- 22 Mar
Is Business Loan Demand Increasing?
Demand for business loans may have increased recently, temporarily outstripping the demand for crowdfunding.
Internet Search Traffic For Business Loans & Crowdfunding
Looking at the trend in Google's search traffic is a good way to measure demand. I have been looking at the volumes of search traffic, in the UK, for the terms "crowdfunding" (CF) and "business loans" (BL). When you look back prior to March 2014, the volume of search for business loans constantly outstripped the volume of UK search for crowdfunding. However, after that date CF, as a search term, has moved ahead.
The Recent Shift Towards Loans
That is until recently. Since the end of 2016 the volume of search for BL appears to have steadily increased and at times, exceeded the volume of seach for CF, indicating a possible shift in relative demand for the two products.
However, it is interesting to look at the British Banking Association's figures, which show a reduction of 9% in demand for loans between 2016 and 2015. Perhaps this suggests that many of those searching online are not ending up going with a bank loan option. There are now many alternative lenders within this market space, indeed, only the other day I tweeted about one of our invoice finance partners, Ultimate Finance Group Limited that have just launched a new loan platform.
Our Experience At FundInvoice
We have experienced an increase in demand as a commercial finance brokerage, in the number of customers seeking commercial loans. This has been experienced along with an increase in requests for asset based finance generally.
Help With Commercial Loans
Our partner organisations have been able to assist some of our clients that were seeking business loans. They have access to some of the finest rates on the market call Sean on 03330 113622 for help..
What Will Happen Next?
It should be noted that the term CF will also draw search traffic from those that are trying to use it for charitable purposes, but it is difficult to strip out parts of the search traffic. It will be interesting to see what happens next. This could just be a blip in the figures, that swings back in favour of CF, or it may be that the golden era for crowdfunding is beginning to wane - only time will tell.