Business owners are in the dark about their financing options, according to a quarterly study of small business trends released by On Deck Capital, a leading platform for small business loans. The findings showed that 66% of business owners don’t have a strong understanding of how business credit is calculated or how it is used by lenders. What’s more, 80% of business owners don’t think banks do a good job at explaining how to qualify for different business financing products. The study also revealed that 87% of business owners have not found an online resource to answer their business financing questions.
In response to the study’s findings, OnDeck has launched their Small Business Credit Education Initiative to educate and engage business owners on business financing and credit. The company’s first two commitments to credit education include BusinessLoans.com, a first-of-its-kind resource solely dedicated to explaining business financing, and a national partnership with SCORE, a non-profit organization comprised of 11,000+ volunteer mentors who provide free and confidential small business mentoring and advice.
“OnDeck has worked with tens of thousands of business owners and we repeatedly hear that small businesses need a go-to resource for general financing education,” said OnDeck CEO Noah Breslow in a released statement. “Our company is 100% focused on small businesses and their success, so we see BusinessLoans.com and our SCORE partnership as extensions of our commitment to ensuring all small business owners get the critical tools they need to grow.”
While it’s necessary for small business owners to find the right funding for their particular business needs, navigating this path is often a challenge.Â According to a recent study by the Federal Reserve Banks of New York, Atlanta, Cleveland and Philadelphia, small businesses seeking financing spend 24 hours researching and applying for credit. BusinessLoans.com is meant to simplify the process with straightforward, practical guidance as well as up-to-date content to help business owners more easily navigate the world of financing. The site contains information on different types and providers of credit, financing option assessment tools and guides on how to successfully apply for a loan.
Part of credit education is understanding how to run a healthy, successful business. As the sponsor of SCORE’s Financing Center for Excellence on www.SCORE.org, OnDeck will provide any small business owner that applies to OnDeck with special access to mentoring and advice from SCORE via a dedicated online experience, and will equip SCORE’s 320 chapters nationwide with custom-built educational tools focused on the rapidly evolving small business lending industry.
“Small business owners face a vast and frequently changing landscape for financing, and both OnDeck and SCORE are committed to providing small business owners with the information they need to make informed decisions,” stated David R. Bobbitt, president of the SCORE Foundation. “Through this partnership with OnDeck, SCORE will enhance our offerings to small business owners, allowing them to better understand available financing options and ultimately achieve success.”