Guidant Financial reports 17 percent growth in small business lending transactions, signaling that individuals are confident enough to make the leap into business ownership.
As confidence in the state of small business rises, so does the number of people who are making the leap into small business ownership. Recent statistics have shown an increase in the number of people who are pursuing their entrepreneurial dreams, thanks to increased confidence in the U.S. economy and ease of access to small business capital.
Guidant Financial, which helps individuals obtain money to start or buy small businesses, has seen 17 percent growth in lending transactions over the last year, signaling that more aspiring business owners are taking action to pursue their dreams. What’s more, a recent study from Paychex found that entrepreneurship rates in the first quarter of 2018 neared peak levels following the recession in 2009, and the rate of small business failure has consistently decreased since 2014.
Growth in the number of people starting a business can be attributed to increased optimism in the state of small business. According to Guidant’s 2018 State of Small Business survey, the majority of current and aspiring small business owners are confident in the political state of small business. This matches the nation’s overall confidence levels among consumers and current business owners, which currently sit among all-time highs. This combined with a strong stock market has given aspiring entrepreneurs the assurance they need to make the leap into business ownership.
The small business lending environment has also become increasingly small-business friendly over the past year, both in terms of loan approval rates and the many funding options available to new entrepreneurs. According to Biz2Credit’s Small Business Lending Index, business loan approval rates at big banks reached 26 percent in April 2018, continuing an upward trend over the past few years. What’s more, the low-interest lending environment make small business loans more affordable for entrepreneurs.
In addition to loan approval rates inching up, entrepreneurs now have access to a wide variety of funding methods to meet their capital needs. Guidant credits much of its growth to the increased awareness and pursuit of 401(k) business financing. Formally known as Rollovers for Business Start-ups (ROBS for short), this method allows business owners to use their existing 401(k) or IRA funds to start or buy a business without incurring tax penalties or early withdrawal fees. ROBS can be used as a stand-alone, debt-free funding method or in combination with other options. ROBS can even be used as the down payment on a business loan. In fact, approximately half of Guidant’s Small Business Administration loan clients use ROBS in combination to finance their business endeavor. It’s because of this unique combination that Guidant also saw a 97 percent increase in SBA loans year-over-year.
In addition to the 17 percent increase in lending transactions, Guidant has also seen a 23 percent increase in revenue. This is a testament to the company’s ability to blend high-touch customer service with high-tech tools that allows business owners to confidently identify and deploy the financing method that best suits their needs.
Learn more about Guidant Financial and the small business financing products it offers here.