Small business financing has been hot and cold throughout the past several years, especially with entrepreneurs remaining so cautious. However, some of the trends that started toward the end of the recession are prevailing today, including those related to the types of banks and lenders that are approving the highest rate of small business loan applications.
Forbes recently reported that approval ratings from larger financial institutions dropped to 23.1 percent between July and August, while smaller banks increased the frequency. Interestingly, the news provider pointed out that small banks approved 48.9 percent of all applications during the stud period, while nearly two-thirds of entrepreneurs looking for funding got their loan.
At the end of the day, Forbes argued that the current climate for small business lending is still largely positive, and that other economic factors are likewise showing signs of improvement going into the final stretch of the year.
Entrepreneurs looking to acquire a small business loan should always consider working with a local, community bank. These institutions have high approval rates, while also offering more guidance to properly navigate the borrowing process.