Small and Medium-sized Businesses Shifting Allegiance Away from Traditional Lending Practices, New Swift Prepaid Study Shows
CHICAGO--(BUSINESS WIRE)--Apr 4, 2019--Small and medium-sized businesses (SMBs) prioritize speed of payment and favorable interest rates when selecting a lender, according to a new study by Swift Prepaid Solutions, a global leader in prepaid corporate disbursements and incentive payments. These findings show SMBs are moving away from traditional lending practices and placing a higher value on instantaneous access to funds.
Swift Prepaid Solutions survey results show of the 38 percent who took out a loan in the last 18 months, 64 percent intend to apply for another loan in the next year and have the following traits:
- Interest rates, closely followed by speed of payment, are most important when choosing a lender. These considerations outrank factors such as flexibility with line of credit, ease of application, referral, credibility and reputation of the institution.
- SMBs who have taken out a loan in the last 18 months most prefer to instantly receive loan payouts in the form of a prepaid account, followed by ACH payments to bank accounts. A significantly smaller percentage prefer PayPal, checks and pushing funds to a debit card.
- Google is the primary method used to find a lender, far surpassing the percentage that turned to referrals, social media, online reviews, advertising and bank branches and websites.
The study indicates that customer demand for greater speed and flexibility of payout options provide innovative SMB lenders with the opportunity to fill this market gap by offering virtual prepaid cards.
“Small businesses often need immediate funding to support needs like equipment and inventory purchases, marketing and payroll,” said Patrick Crosson, Swift’s Vice President of Sales, Emerging Markets. “Prepaid payments provide lenders with immediate financial disbursement while also offering a branded experience unique to each user.”
Crosson will represent Swift at the LendIt Fintech conference in San Francisco, April 8-9.
For more details, you can see the full study here.
About Swift Prepaid Solutions
Swift is leading the payments movement to greater value through high-impact brand connections at the intersection of the payment. Swift optimizes fast corporate-funded payments to businesses, their customers, employees, contractors, participants and channel partners through digital and physical card payments in 160+ countries, 17 languages and 10 currencies. www.swiftprepaid.com Swift is owned by Syncapay, a holding company “ Investing In The New Frontier Of Payments.”www.syncapay.com
View source version on businesswire.com:https://www.businesswire.com/news/home/20190404005149/en/
CONTACT: Jacqueline Wasem
KEYWORD: UNITED STATES NORTH AMERICA ILLINOIS
INDUSTRY KEYWORD: SMALL BUSINESS PROFESSIONAL SERVICES FINANCE
SOURCE: Swift Prepaid Solutions
Copyright Business Wire 2019.
PUB: 04/04/2019 09:11 AM/DISC: 04/04/2019 09:11 AM