AVI Business Solutions

  Small businesses are the backbone of innovation and economic growth in today's fast-paced business landscape. However, one of their most persistent challenges is securing timely access to capital and managing cash flow effectively. With traditional banks often falling short in meeting the dynamic needs of small business owners, non-bank lenders are stepping up as the go-to solution for financing . Recent data reveals a significant shift in how small businesses approach funding, with non-bank lenders becoming the first choice for many entrepreneurs. Let's dive into why this trend is gaining momentum and what it means for small business owners navigating the world of capital and cash flow management. The Shift Toward Non-Bank Lenders The numbers tell a compelling story. According to recent data, 76% of small business owners now apply for funding with a non-bank lender before even considering a traditional bank. This is a notable increase from 73% in Q3 2024 and a significant j...

  In early 2023, a wave of bank runs among small and midsize lenders sent shockwaves through the financial system, tightening the screws on small business lending. Smaller banks, more likely to approve loans for small business owners, faced unprecedented pressure. Coupled with the Federal Reserve's interest rate hikes, persistent inflation, and new regulations sparked by the turmoil, accessing capital has become a Herculean task for entrepreneurs. Yet, amidst these challenges, a transformative trend is reshaping the lending landscape: the Digitization of financing and the rise of fintech lenders . This article examines how these forces, along with strategies such as risk-based pricing and technologies like artificial intelligence, are reshaping small business lending—and what it means for entrepreneurs, particularly those who have been historically underserved. The Capital Conundrum for Small Businesses Small businesses are the backbone of the U.S. economy, but securing financing r...