The Unloaned: Why Some SMBs Don’t Borrow and What Can Be Done About It
Report Summary
The Unloaned: Why Some SMBs Don’t Borrow and What Can Be Done About It
Lenders have an opportunity to expand the market by targeting non-credit-seeking SMBs.
Boston, April 27, 2017 – The market for lending to small and midsize businesses in America is one of the most attractive ways for banks to deploy their capital. One often overlooked—but important—segment in this market is the group of SMBs that do not seek credit. If the businesses within it were convinced to borrow, could it significantly increase opportunities for lenders?
Among the characteristics of unloaned SMBs explored in this piece are the reason why these small businesses don’t borrow and how they differ from their peers that do borrow. Based on an August 2016 Aite Group survey of 601 U.S. SMBs, it clearly identifies the characteristics of SMBs that don’t borrow and presents relevant findings for lenders.
This 18-page Impact Note contains 10 figures and one table. Clients of Aite Group’s Wholesale Banking & Payments service can download this report, the corresponding charts, and the Executive Impact Deck.