Supply chain delays, staff shortages and wage increases take advantage of the widespread demand for small business owners – especially during the holiday season.

But that does not mean that they should miss out on the prospect of a stronger holiday season. Banks and banks continue to open their coffers for the country’s small businesses, and financial opportunities abound.

Over the months, credit approvals have been steadily increasing in all types of lenders except for credit unions. According to the Biz2Credit Small Business Loan Index, alternative lenders led the package in October and approved 25.6% of borrowers. It increased by 25.4% in September. Large banks approved loans of 14.1%, more than 14%. Meanwhile, small banks approved 19.7% of their loan applications, an increase of 0.2%.

Business Credit CEO Rohit Arora told Business.com:

In addition to the desire to borrow, many are enjoying their status. “Businesses have received $ 1.3 billion in pardons [during the pandemic]Lenders can be less strict, ”Arora said.

Sales of several businesses have increased this year, and their debt is much lower than in 2019, which is helpful.

DID YOU KNOW? As we set out to find the best lenders for small businesses, we focused on alternative lenders. We know that they are more willing to work with all kinds of small businesses, that they need less paper, and that they provide immediate financial support. However, the cost of borrowing a mortgage is usually higher.

SBA records non-pandemic loans.

Increasing the lender’s speed is not just for small banks and alternative lenders. The US Small Business Administration, which was a lifeline at the time of the outbreak, is also preparing credit records. Earlier this month, SBA announced that it will support more than 61,000 traditional loans for the Small Business Fund in the fiscal year 2021, with $ 4.8 billion. This does not include the $ 1 trillion-plus CV-19 relief that SBA has received since the outbreak began. The loan amount for the 504 loan program has increased by 41 percent this year.

SBA expects another busy year in 2022, with large lenders seeking to reduce their vulnerability. “The threat of a pandemic in the economy is increasing somewhat,” said Alan Hout, district director of the SBA North Dakota Office. “Lenders, banks and credit unions do not like too much risk. SBA guarantees help reduce that in an uncertain environment.”

The bottlenecks between business owners are disappearing

Lenders’ interest in providing small business loans is growing, and the stigma attached to it is disappearing. In a recent Papal survey, 44% of small business owners said they were more willing to apply for a small business loan than before the pandemic, and that 1 in 3 planned to receive financial support next year.

“The epidemic has caused a great deal of anxiety and small businesses need to rejuvenate,” said Bernardo Martinez, vice president of the International Monetary Fund. “They are accepting their new roles online and are really trying to invest in those areas. They need capital they didn’t need before.”

One in five business owners in the Papal survey said they needed money to boost email and social media marketing, while another 20% wanted to increase it. During the holiday season, business lenders offer loans for marketing and advertising, online presence, and selling in new markets.

TipTip Due to the supply chain crisis, it may be too late to stock up on holiday items, but small business owners need to be prepared for 2022. Valentine’s Day and Easter are just around the corner.

Where can small businesses make money?

If you need financial support, it is a good idea to start a small business. There are various options for protecting capital. Interest rates are looming on the horizon, and borrowing is cheap.

Take the banks to begin with. The big ones are not lenders, but the little ones are not. “Community banks hold 43% of all commercial loans, more than 40% of agricultural loans and more than a third of commercial real estate loans,” said Orvin Kimboro, chairman and CEO of Midwest Bank Center.

These local banks deal with their small business clients, which helps during the writing process. Still, approving a bank loan can be tedious. It requires a lot of paperwork, which is why 16% of business owners in the Papal survey said they did not apply for a business loan.

Small business owners have options outside of bank loans. You can borrow money from current and future sales through working capital loans and trader cash advances. These loans typically require much less paperwork, and financial support can be faster.

FYIFYI 1 In our review of Rapid Finance, we found that within 24 hours after approval, the money can be deposited into the borrower’s bank account. In our review of SBG Financial Support and Balboa Capital Assessment you can find out more about lenders who offer fast money.

Short-term loans and equipment financing are other popular options from banks and alternative lenders. Short-term loans – usually used for cash flow, inventory or live promotion – have loans of no more than 18 months. Bottom line is less tedious and the money is faster. Our Fora Financial Review confirms that the contract expires in 15 months. Credit and micro lending lines are another option for small business owners.

at lastat last: Small business owners have many options for financing. If you have time for a long process, a bank loan is a good choice. If you need immediate financial support, consider working capital loans and trader cash growth.

Money is pouring in again for small business owners, but not every loan is right for you. Before choosing a loan, find out why the money is needed and how often you need it. If you want to buy extra items before the holiday, a working capital loan or a cash loan may be a good option. If you want to buy expensive machinery, equipment financing is a better choice.

“What’s the use of the money? Are you closing the gap or is it fueling growth?” Al Hall Shelton, SCORE Consultant and Angel Investor. “There must be benefits. How much do you earn, can you repay, and do you have leftovers?”