Tag

small business lending

3 insights

Two bullet bars showing that 59 percent of small business debt holders secured their debt with a personal guarantee against 51 percent using business assets, and that 88 percent of owners applied using personal credit history against 12 percent who used business credit only.

Fifty-Nine Percent of Small Business Debt Is Secured on a Household You Underwrite Once

Most small business debt is backed by a personal guarantee, which makes a household balance sheet the collateral. Merchants get monitored daily. Guarantors get looked at once, at origination.
AI & Automation
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A labelled diagram of how a small business owner self-funds before applying: a cash gap appears, personal credit covers it for 75 percent of owners, utilization rises for 23 percent and personal credit scores fall for 12 percent, and 25 percent are then denied or significantly delayed on the business application that follows.

Three in Four Applicants Already Borrowed Before They Reached You. It Was on Personal Credit.

Revolving credit is growing at nearly twice the pace of everything else, and 75 percent of small business owners funded the business on personal credit in the past year, up from 49 percent in 2024.
AI & Automation
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Two bullet bars comparing small business applicant outcomes against bank benchmarks: 42 percent received the full amount sought against 57 percent at small banks, and 60 percent of online lender borrowers said costs exceeded expectations against 32 percent at large banks.

Thirty-Six Percent of Applicants Got Part of What They Asked For. That Is Your Biggest Untouched Book.

Across small business applicants, 42 percent received the full amount sought and 36 percent received some or most. The partially funded group carries an unmet need, a completed file, and no owner.
AI & Automation
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