What is Small Business Loan Market?
A small business loan, also known as a commercial loan, is loan products designed especially for investment in a business. Business loans for small businesses cater to the urgent needs that a new opportunity can throw up. These loans can either be secured by collateral or be unsecured, based on the amount needed, the type of loan and the relationship between the business and the lender.
The market study is being classified by Type (Short-term Loan, Medium term Loan and Long-term Loan), by Application (Large Enterprise, Medium-sized Enterprise and Small Companies) and major geographies with country level break-up.
Société Générale S.A. (France), The Toronto-Dominion Bank (Canada), The Hongkong and Shanghai Banking Corporation (HSBC) (China), Wells Fargo & Company (United States), MUFG Bank Ltd. (Japan), Barclays plc (United Kingdom), The Japan Post Bank Co., Ltd. (Japan), Crédit Agricole Group (France), Industrial and Commercial Bank of China Limited (China), Banco Santander, S.A. (Spain) and The Bank of America Corporation (United States) are some of the key players profiled in the study.
The companies are now exploring the market by adopting mergers & acquisitions, expansions, investments, new developments in existing products and collaborations as their preferred strategies. The players are also exploring new geographies and industries through expansions and acquisitions so as to avail a competitive advantage through combined synergies. Research Analyst at AMA predicts that Global Players will contribute to the maximum growth of Global Small Business Loan market throughout the predicted period.
Segment Analysis
Analyst at AMA have segmented the market study of Global Small Business Loan market by Type, Application and Region.
On the basis of geography, the market of Small Business Loan has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Market Drivers
- Increasing Awareness regarding the Benefit of Small Businesses
- Rising Number of Small Businesses Around the Globe
Market Trend
- The Growing Trend of Customer Loyalty and Retention by Providing Integrated Services to the Customer
Opportunities
- Growing Demand from Emerging Market such as China, India, Brazil, among others
Challenges
- Lack of Service Disruptions or Data Safety and Security
Market Leaders and some development strategies
In Jan 2020, Barclays announced a new fintech partnership with Nimbla. In a high street banking first, Barclays has announced a partnership with Nimbla, a pioneer of single invoice insurance. Barclays’ one million SME clients will have the opportunity to benefit from the partnership, with the new ability to take out insurance against individual invoices, rather than the whole book.
In Jun 2020, Newtek Business Services Corp. announced that Newtek Small Business Finance, the Company’s nationally licensed lender under the U.S. Small Business Administration (“SBA”) Section 7(a) Program, will restart its SBA 7(a) loan program and begin accepting applications on June 29, 2020.
Key Target Audience
Small Business Loan Providers, End Users of Small Business Loan, Regulatory Bodies, Governmental Bodies and Others