An overwhelming majority — 87.5 percent — of small business owners say they’re investing more in their business in this year than in 2015, and most are borrowing funds in order to do so, according to a study published today by fintech company BizFi. More than 9 in 10 said they would borrow money to invest, with 38 percent planning to borrow more than $40,000.
The survey results painted an optimistic picture in terms of small business growth; 42.9 percent of small business owners said they are looking to expand locations in 2016 and 63.1 percent reported plans to hire new employees. In addition to hiring and expansion, business owners cited marketing and inventory as other critical areas they plan to deploy capital this year.
The survey also noted that small business owners are increasingly leaning toward alternative financing sources — just over two-thirds said they preferred working with an online lender to secure financing versus traditional bank loans.