If you needed a loan, would you shop around first or go with the first lender you found? Small business owners are more likely to do the latter. For small business owners, personal interaction is key, and with many lenders focusing strictly on online marketing methods to reach new customers, these findings may come as a surprise.
While there is a plethora of alternative online lending options for small businesses, 44% of all loan applications are completed in person, even though business owners of all ages surveyed reported using an online process for researching and initiating a loan application, only younger business owners were very open to using it to complete the process.
User-friendly websites do help aid in conversion, but they don’t influence lender choice. Small business owners are more likely to use the first lender they meet, proof that even in an age of technology and advancements in online lending, human interaction is still one of the most important parts of the loan process, this may be due to the challenges small businesses face during the loan process as restrictions have increased on traditional loans.
First thing business owner do is ask rate…When it is more important to get the terms you want. If a lender term wants a higher rate, but let you pay it off on a longer term you may find more is less!
Despite great interest in strictly online alternative lending, many business owners still desire personal interactions with financial providers that will take the time to discuss business challenges and solutions. National Transaction standout over competitors because of its human/personal interactions.
