Biz2Credit: https://www.biz2credit.com/ Related Resource: http://www.biz2credit.com/small-business-lending-index/september-2016 As per the month of September 2016, Big banks increased 23.4% of small business funding requests, up from 23.3% in August 2016. For further queries, contact us at: 800-200-5678 Follow us at: Twitter: https://twitter.com/biz2credit Facebook: https://www.facebook.com/biz2credit Linkedin: https://www.linkedin.com/company/biz2credit-llc Pinterest: http://www.pinterest.com/biz2credit/ Google+: https://plus.google.com/u/0/+Biz2credit/

1. yearly comparison
59.7%
60.9%
MONTHLY comparison
59.7%59.9%
Aug’16Sep’15 Sep’16
yearly comparison
48.7%
49.0%
23.4%
22.5%
yearly comparison MONTHLY comparison
23.4%23.3%
62.9% 63.0%63.0%
62.0%
Small Biz Loan Approval Rates at Big Banks
and Institutional Lenders Continued Surge in September
September 2016Small Business Lending Index
According to the Biz2Credit Small Business Lending IndexTM
, a monthly analysis of more than 1,000 loan applications on Biz2Credit.com
Loan approval rates at big banks ($10 billion+ in assets) and institutional lenders improved to all-time highs in September 2016, according to the most recent
Biz2Credit Small Business Lending Index™, the monthly analysis of more than 1,000 small business loan applications on Biz2Credit.com. Meanwhile, approval
rates at small banks, alternative lenders and credit unions all dropped in the last month.
About the Biz2Credit Small Business Lending IndexTM
Biz2Credit analyzed loan requests ranging from $25,000 to $3 million from companies in business more than two years with an average credit score above 680.
Unlike other surveys, the results are based on primary data submitted by more than 1,000 small business owners who applied for funding on Biz2Credit's online
lending platform, which connects business borrowers and lenders.
TM
Loan Approvals at Small banks
Meanwhile, lending approval rates dropped slightly at small banks to 48.7% last month. It was the first time loan approval
rates dropped at small banks in back-to-back months since March 2016.
“The biggest advantages of institutional lenders are their ability to quickly process loans quickly at affordable terms for the
borrower, Right now, they are doing it faster and more efficient than anyone on the market. High yields and low default rates
are attracting global investors to the marketplace as it is proving to be a hot commodity for investors.”
- Biz2Credit CEO Rohit Arora
“
Loan Approvals at Institutional Lenders
Institutional lenders' loan approval rates improved to an all-time high of 63% in September 2016. It was the third
consecutive month that institutional lenders experienced increases in their loan approval rates as they continue to
increase market share in marketplace lending.
Loan Approvals at Big banks
Small business loan approval rates at big banks improved to 23.4% in September, up one-tenth of a percent from August’s
figure. It marked the seventh time in the last eight months that lending approval rates increased at big banks.
MONTHLY comparison
48.7%48.8%
yearly comparison MONTHLY comparison
Sep’16Aug’16
Credit union approvals
Loan approval rates at credit unions dropped in September to an all-time Index low of 41.3%. However, it was the first time
that loan approval rates didn’t drop in this category of lenders in over a year.
yearly comparison
41.3%
42.7%
MONTHLY comparison
41.3%41.5%
Sep’15 Sep’16
Small business loan approvals by Alternative lenders
Alternative lenders experienced a decrease in loan approval rates in September, approving 59.7% of loan requests as it
continues its downward spiral.
“Small business owners no longer have to borrow at any cost and typically alternative lenders charge much higher rates,
Alternative lenders have lost much of the competitive advantage they held for so long. As other categories of lenders offer better
terms and financing just as quickly, we will see alternative lenders continue to lose market share in loan volume.”
- Biz2Credit CEO Rohit Arora
“
“The Federal Reserve failed to increase the interest rates that banks and other lending institutions were hoping for, While the
Fed may decide to increase the interest rates at its next policy meeting in November, many banks are lagging behind in their
loan goals for 2016. They must close more deals to meet those numbers. I expect big banks to finish strong for 2016, especially
if the looming interest rate hike comes to fruition.”- Biz2Credit CEO Rohit Arora
“
"Not enough small banks are digitizing their loan approval process and that is holding them behind, An interest rate increase
would seemingly benefit small banks because right now conventional loan rates are actually lower than SBA-backed loans and
that is resulting in lower volume of loan requests for this category of lenders.” - Biz2Credit CEO Rohit Arora
“
"Credit unions are not as relevant as they once were when it comes to small business finance, They’re lagging behind in
technology, a mistake in the 21st century, and are becoming an afterthought for borrowers.” - Biz2Credit CEO Rohit Arora
“
Sep’16Aug’16Sep’15 Sep’16
Sep’16Aug’16Sep’15 Sep’16
Sep’16Aug’16Sep’15 Sep’16
Sep’16