Many small business owners report it is becoming increasingly difficult to obtain a bank loan for their business, according to a new survey released this month.
Just over 31 percent of small businesses (defined as those with annual revenue of less than $5 million) were able to secure a bank loan in the current quarter, according to the latest Pepperdine Private Capital Access Index, a national survey of business owners conducted between April 8 and May 17.
The 31.6 percent success rate is the lowest in more than two years since it dropped to 29.1 percent in fourth quarter 2016. The success rate was 43.9 percent in the first quarter of 2019.
While 44.2 percent of small business owners seeking financing tried to get a bank loan, more turned to business credit cards (54.5 percent) or personal credit cards (47.6 percent).
Family and friends (37.7 percent), online business lenders (30.7 percent) and trade credit (32 percent) were also popular funding sources.
Click here to read the report produced by the Graziadio Business School at Pepperdine University with support from Dun & Bradstreet.
If you’ve been turned down for a business loan, Dun & Bradstreet offers sever suggestions on how to improve your chances:
Click here to read more from Dun & Bradstreet.
The Delaware Division of Small Business offers several programs that help small business owners find funding including State Small Business Credit Initiative Participation Loans and our newly launched EDGE Grants program.
Visit delbiz.com to learn more.
Related Topics: Delaware Division of Small Business