Enova International's OnDeck Report: Small Business Optimism and Shift to Non-Bank Lending
- Enova International's OnDeck reports 92% of small business owners are optimistic about growth despite economic challenges.
- 72% of small business owners prefer non-bank lending for quicker access to funds, highlighting a shift in financing trends.
- OnDeck emphasizes transparent online lending solutions tailored to the evolving needs of small businesses in today's market.
Small Business Growth and the Shift Toward Non-Bank Lending
In the latest Small Business Cash Flow Trend Report from OnDeck, a subsidiary of Enova International, optimism among small business owners is strikingly high. The report reveals that 92% of small business owners express confidence in growth over the next year, with 26% anticipating significant expansion. This optimism is particularly noteworthy given the current economic climate, which is characterized by challenges such as inflation and cash flow issues. In fact, 32% of the surveyed owners cite inflation as a primary concern, while 31% struggle with cash flow management. The report illustrates how resilient and forward-thinking small business owners are, as they navigate these hurdles while maintaining a positive outlook on future growth.
A significant trend highlighted in the report is the growing inclination of small businesses to seek financing from non-bank lenders. An impressive 72% of small business owners prefer these alternative financing solutions, which offer quicker access to funds compared to traditional banks. This shift reflects a broader change in the lending landscape, where speed and accessibility are paramount for small businesses that require immediate capital to seize growth opportunities. Enova's OnDeck plays a crucial role in this evolving market, providing tailored lending solutions that meet the diverse needs of small enterprises across various sectors.
Technological innovation also emerges as a key theme in the report, with 66% of small businesses utilizing artificial intelligence (AI) primarily for marketing tasks. This adoption of AI signifies a proactive approach among business owners who are not just responding to challenges but are actively leveraging technology to enhance their operations and drive growth. Furthermore, 57% of businesses are preparing for potential tariff impacts, showcasing their commitment to strategic planning amidst uncertainty. As Jim Granat, Co-President of Small Business at Enova, notes, the determination and adaptability of small business owners are pivotal in navigating these challenges, while David Snitkof from Ocrolus emphasizes the importance of real-time, AI-powered analytics in positioning businesses for success.
Beyond the immediate findings, the report reflects OnDeck's dedication to providing transparent and responsible online lending solutions that cater to the evolving landscape of small business financing. Conducted from June 17 to June 30, 2025, the survey garnered insights from 410 small businesses with working capital loans and analyzed over 2.9 million applications for such financing in the past 15 months. This comprehensive data underscores the importance of understanding the unique needs and challenges faced by small businesses today. For more insights and information, interested parties can visit ondeck.com/small-business-trends.
