Business Loans

4 Reasons 2018 is Ripe for Small Business Loans

2018 hosts a number of changes that will help you get the loan you need. Read on to see how you can leverage these 4 factors for your small business loan.

1) Legislation is Giving Loans a Leg Up

Two items passed in 2017 will strongly encourage loan approval in 2018.

Tax Reform
The tax reform has dropped the small business income tax rate from a top tax rate of 39.6 percent to 25 percent. Additionally, the reform allows deduction of all new equipment purchases for 5 years from your taxes, making equipment financing a popular option.

Federal Reserve Interest Rates
The Federal Reserve permitted lenders to raise interest rates on loans. While this might seem like a negative, because of these elevated rates, lenders will be more likely to approve loans that could help your business thrive.

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2) Business is Booming

With the 2017 economy ending on a high, the 2018 market will be ripe for loan approval. Banks now have more available cash for loans and with the prospect of business doing better in 2018, banks are more readily looking to lend. As a point of reference, the Small Business Association (SBA) approved nearly double the loans in 2017 as it did in 2009 (directly after the crash), and estimates to approve the most loans yest in 2018. And that’s just for SBA loans!

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3) 2018 is the Year of Digital Lending

In response to the Millennial generation solidifying itself as a legitimate source of borrowers in 2017, Forbes contributor Rohit Arora predicts that banks will continue to increase their reliance on online loan brokers as more customers will be searching for loans on the web. Meaning, more loans options at various rates will be available with sites that will do the searching for you and at no cost. See what loans you qualify for with our quick small business loan application.

4) Opportunity Persists in the New Year

As a last piece of advice, now remains the perfect opportunity to determine how a loan might be advantageous for your business. Below are some possible avenues to get you started:

Increase Inventory
Are you expecting consumer sales to increase? Due to the continued improvement of the economy from 2017 into 2018, sales expectations are up. These predictions stem from a decrease in unemployment by 0.5% YoY to 4.4% in August 2017. With more income, comes more money to spend. Preparing for that increase in demand with the appropriate increase in inventory could be just the move you need to benefit most. When considering inventory, a short term loan would be the best option as you can pay the loan back soonest with the gain from an uptick in sales.

New Hires/Expansion
Have you been looking to take the next step in developing your employee base? The new year could be your right time for growth. Whether its hiring new employees, buying another building or restructuring existing property to suit your growth, a long-term loan would be a better option to explore.

Consolidate Business Debt
Are you debt free? Freeing your bank account from multiple sources of debt incurred from years previous can help you focus on the new year. While a SBA loan is on the more difficult end of the spectrum for approvals, its low rates and long repayments are the smartest option for consolidating your debt to better tackle it.

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