Types of Small Businesses That Receive The Most Funding
Any business can be in need of additional funding at some point. If you’re interested in business financing such as alternative business loans to move the wheel in the right direction, you’re at the right place.
Small Business Lending: Alternative Business Loans
Almost any small business can get a loan with more or less difficulty based on whether they’re low or high risk. However, certain businesses have better chances to get approved for the most funding.
According to a well-known online loan broker’s “State of Small Business Lending Report 2020,” the top business types that were eligible for more funding compared to others last year, include:
- Retailing Electronics
- Auxiliary Health Services
- Physicians/Doctors Office
- Strategy/General Consulting
- Manufacturing Other Merchandise
- Software Development
- Hotel, Motel, Lodging
By the way, credit scores were the reason why 36% of small businesses didn’t get approval for at least some of the funding they’d applied for. Happily, neither poor or nor the lack of credit history can’t be a reason for denial if you turn to a reputable alternative online lender that specializes in the high risk field. With a true business funding expert, you can enjoy the most secure and cheapest rates and fees for alternative small business loans.
Important Stats for Small Business Owners
Did you know that 29% of small businesses don’t succeed because of the lack of the necessary capital? In 2019, 43% of small businesses applied for a loan. 85% approval rate has been registered for merchant cash advances (MCAs), thus accounting for the highest one.
657 was the average personal credit score (Experian FICO 8) of small business owners, and 170 was the average business credit score (FICO SBSS). The report also reveals the most crucial points business owners should take into accounting to maximize funding:
- Alternative lending providers are more interested in revenue than profit
- If you need longer-term loans, you should show more profit
- Your personal credit score can’t be left in ignorance
- Business funding for major projects is more realistic than for minor ones
Having access to the necessary funds is critical to every business owner’s success. However, there’re certain businesses that’d more chances to get approved for more funding than others in 2019.
Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their alternative business loans solutions. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.