Small Business Lending Trends

Since traditional banks and credit unions began tightening lending practices in 2008, new trends started emerging in the alternative-lending arena, specifically for small business loans.

Now, as we proceed through 2015, we see these trends unfold in the financial marketplace as entrepreneurs create and expand businesses. If you’re in the market for a small business loan, rest assured there is a new way to secure your finances.

1 – Alternative Lenders

The rise in alternative lending in the small business loan marketplace is a quick-growing trend. It’s been difficult for small business owners to secure loans with traditional banks and credit unions in the recent years, so alternative lenders have become popular amongst entrepreneurs. Rather than focusing solely on credit scores, other factors are taken into consideration, such as credit card sales, band deposit history, credit partners and even social media standings.

2 – Tech-based lending

Alternative lenders have created technology-driven options for business loans, such as applications and approval processes through secure, online websites and mobile applications. Advanced technology is making it more convenient to connect with your financial institutions and lenders, plus most lenders let you pay monthly statements online.

3 – Crowdfunding

The practice of funding a project, venture, investment or cause by raising monetary contributions via the Internet is a newer trend. The crowdfunding model is fueled by three types of roles: the initiator who proposes the idea and/or project that requires funds; individuals or groups who support the idea financially; and a moderating organization / platform that brings the roles together to launch the idea, such as,, and All vary in some form, however it is always up to the initiator to relay their idea is investment worthy.

We expect to see even more creative and technological advances for small business loans through 2015 and into 2016.