Enova International's OnDeck Report: Small Business Optimism and AI Financing Trends
- Enova International's OnDeck report shows 93% of small businesses expect growth in 2025, reflecting strong resilience.
- Jim Granat of Enova emphasizes technology adaptations are vital for small businesses to stay competitive.
- 76% of small businesses now prefer non-bank lenders, indicating a shift towards alternative financing solutions.
Small Business Resilience and Financing Trends: Insights from OnDeck’s Latest Report
A recent report from OnDeck, a prominent small business lending company under Enova International, reveals a broadly optimistic outlook among small businesses for growth in 2025. The Small Business Cash Flow Trend Report indicates that 93% of small businesses expect either significant or moderate growth, a minor decrease from 94% in the previous quarter. This sustained optimism underscores the resilience of the small business community, even as they navigate potential economic challenges such as impending tariff changes. Notably, over half of the surveyed businesses (55%) have proactively implemented strategies to mitigate the impacts of these tariffs, demonstrating a forward-thinking approach to risk management.
The report also highlights a significant trend towards the adoption of artificial intelligence (AI) among small businesses. Approximately 69% of respondents indicate that they utilize AI tools primarily for marketing tasks, reflecting a growing recognition of technology's role in enhancing operational efficiency and customer engagement. This shift not only illustrates the evolving landscape of small business operations but also points to a broader integration of advanced technologies in traditional business practices. Jim Granat, Co-President of Small Business at Enova, emphasizes that these adaptations are essential for small businesses to remain competitive and resilient in a rapidly changing economic environment.
Moreover, the financing habits of small businesses are undergoing a notable transformation. The report reveals that 76% of small businesses now prefer non-bank lenders over traditional banks, marking an all-time high in this preference. This shift indicates a growing confidence in alternative lending solutions, which are often more agile and tailored to the specific needs of small business owners. As David Snitkof, SVP of Growth at Ocrolus, points out, AI-powered analytics play a crucial role in this landscape, providing lenders with real-time cash flow data that can significantly enhance their ability to support these businesses. This evolution in financing options reflects a broader trend towards innovation and flexibility in the small business lending sector.
In summary, OnDeck’s report sheds light on the optimistic outlook of small businesses while also highlighting critical trends in technology adoption and financing preferences. The resilience demonstrated by small businesses, coupled with their willingness to embrace new technologies and alternative lending sources, suggests a robust future for the sector. For more insights and complete survey results, interested parties can visit ondeck.com/small-business-trends.