In an update to the Q1/24 study conducted by Secured Research focusing on bank-owned commercial finance companies* specializing in small business finance, data collected from 121 providers in Q2/24 revealed the following changes from the previous quarter.
- 11% of these entities have slashed their app-only amount limits
- 12% have heightened their time in business (TIB) requirements
- 6% have raised their minimum deal size threshold
- 19% have bolstered standards for historical financial strength
- 34% have tightened fraud verification protocols
- 17% have curtailed the volume of broker business they are willing to entertain
It’s important to understand that this represents continued tightening from Q1/24 numbers that showed the strongest contraction in these areas since the Great Financial Crisis.
Now, more than ever, brokers must exude confidence in their finance capabilities and adopt an assertive approach in a market where access to capital continues to tighten.
*Divisions of commercial banks with over $75 billion in assets specializing in equipment finance, working capital, and commercial real estate finance.
