European fintech iwoca has a new index on the credit landscape for SMEs.
As noted in an iwoca blog post, the company’s “SME Expert Index” is described as an “exclusive” index that includes British agents that “gives an idea of the suitability of small business loans. “
As explained in a note shared with Crowdfund Insider, the effects will focus on key trends in the “types” and “financing value” that small businesses have access to, and “provide a normal review every two months of what is encouraging small businesses. “homeowners to borrow. “
The update also noted that these effects reveal how these trends will be replaced or replaced as the country recovers from the COVID-19 crisis.
Here are some of the key findings of the inaugural index:
As reported through iwoca, its new rate of qualified SMEs, covering a 4-week era in January, revealed that 41% of agents said that “the maximum explanation for why applying for un guaranteed financing was” to manage money day by day. “. ” One in 4 agents, or about 25%, said “growing the business” was “the non-unusual maximum target of a loan, while 20% warned that the final money gaps were the main driving force behind funding applications. “
As discussed through the iwoca team:
“These effects, which we will publish every two months, recommend that small business owners are using financing for short-term means than for long-term projects, and would possibly reflect the broader uncertainty of the economy at a time when companies resort to propping up to strengthen their finances to invest to grow. “
One in five agents (about 18%) “It presented more programs for the show in January than in December, while a quarter said it featured fewer programs,” the iwoca update revealed.
But agents say the un guaranteed funding request from small business homeowners “increased in January compared to December, with more than a third of respondents (36%) noting that they had submitted more programs to lenders compared to the 18% who had submitted the least,” the announcement said.
Brokers also found that those they implemented for CBILS were looking for loans “below the available range. “The vast majority, 92% of the programmes presented in January,” were 250,000 euros or less, two-thirds of the offers. ranging from 150,001 to 250,000 euros,” the iwoca team said, adding that this remains “consistent with last month,” 66% of respondents indicated that the average loan application is the same as in December. “
The ded:
“In the area of unensured loans, two-thirds of agents stated that the “speed of receipt of a decision” was the ultimate role in selecting the lender to send an offer to, before knowing whether the requested amount matched the lender’s offer. (56%). By the way, 26% of agents sent more CBILS programs to non-bank lenders in January compared to December (13% sent less), possibly reflecting our findings on the importance of speed in the area of un guaranteed loans. »