Small Business Loan Trends For 2021

Small Business Loan Trends For 2021

As a small business owner, the financing that you choose could play a critical role in the success of your brand.

In fact, you’ll need to ensure that you choose a lender that’s reputable, offers low-interest rates, and offers loans that are designed with the needs of small business owners in mind. However, many business owners in 2021 are getting loans to cover other expenses, such as these:

1. Switching to a Remote-Only Workforce

As a result of the pandemic, remote work has become more common than ever before. Some business owners have needed financing to purchase the right technologies for their remote workforce. However, making the switch to having a remote workforce has allowed many business owners to save money, which often allows them to choose smaller loans.

2. Getting the Latest Technology

Due to rapid advances in technology, more business owners are seeking out funding to upgrade their computer systems and networks. While there are many examples of technologies that can improve a small business, these are a few of the most common reasons why a business owner in 2021 would take out a loan to pay for upgrades:

  • Cybersecurity improvements
  • Streamlined e-commerce
  • SEO improvements

What if You Need New Equipment?

If you need any type of equipment, there are specialized loans available. However, it’s important to note that these loans often can only be spent on certain purchases. According to Lantern by SoFi, “The term “equipment” covers just about any items you need for your business. However, it can only be used to purchase equipment.”

3. The Cost of a Financial Advisor

In order to run a successful business in 2021, your financial management strategies will be essential. Luckily, a skilled financial advisor will be able to help you make the right decisions when it comes to how much to borrow, the loan to choose, and how to ensure that your small business loan is repaid on time.

4. The Implementation of Sustainable Practices

Due to climate change, economic uncertainty, and other factors, sustainability has become more important than ever in 2021. As a result, many businesses will need to take out loans to cover the necessary changes. Here are a few examples of sustainability purchases that have become more commonplace nowadays:

The Installation of Solar Panels

The initial cost of installing solar panels can be significant, and many business owners get loans to cover the cost. In fact, it’s common for a full array to cost tens of thousands of dollars.

The Implementation of Green Delivery Systems

Making the switch to electric or hybrid vehicles is a great way to do your part to save the environment. However, this can cost business owners tens or even hundreds of thousands of dollars, and many small business owners will take out loans to cover this expense.

The Process of Going Completely Paperless

Going completely paperless is a great way to offer more convenient services for your customers, and it can also help to protect the environment. The initial cost of making the switch is variable, and many business owners have used financing to cover it.

How Can You Pick the Right Lender in 2021?

While there are many platforms that allow you to search for small business loans, one option to consider is Lantern by SoFi. This platform makes it possible to find loans from dozens of different lenders, which means that you’ll be able to compare rates, reviews, and more. Be sure to do your research so you know you’re picking the right lender for your needs.