Survey: 44% of Small Business’ Explored Online Lending Last Year

Small businesses are exploring online lending, with 44% saying they looked into the option in the past year and 25% procuring an online loan during that time, according to the JPMorgan Chase Business Leaders Outlook survey released yesterday. The survey also found that 56% of small businesses say they would be open to procuring an online loan if they find themselves in need of capital.

Mid-sized businesses have also increased their usage of online banking, with 56% saying that they increased their usage in the past year, including the use of electronic payments. Contactless payments were used by 23% of small business and another 20% said they expect to adopt the technology in 2021. More companies are moving to online-only sales, with 14% moving to have all sales come from e-commerce in 2020 and 12% planning to make that change in the year ahead.

Despite challenges in the economy, 77% of midsized businesses and 63% of small businesses remain optimistic about the year ahead, according to the survey. Sales and revenue is expected to grow by 47% of small businesses in the year ahead, a decline from 60% the year prior, while 69% of midsized businesses expect growth, little changed from 70% a year earlier and before the start of the pandemic.