Whether 2012 was your first year in business or you’ve been in function for a few years but still classify yourself as a small business, it’s important to take into account some of the small business trends of 2012, considering what they may mean for your company in the years ahead. 

While each and every company will have their own financial strategies in place, by looking at what other businesses are doing, especially those that are successful, you can better capitalize on your own market share. 

Let’s look at a few of the small business finance trends of 2012 and what you need to know about these. 

Increased Small Business Administration Lending 

The first trend we saw take place was the increase in Small Business Administration lending. Over 30 billion dollars worth of loans were given nationwide. 

This particularly came from smaller banks increasing their lending share, however towards the end of the year, larger banks also stepped up and increased lending as well. 

More Technological Incorporation 

The next trend that was noted in 2012 was a higher degree of technology being incorporated into the lending process. 

Small businesses are turning to online platforms in order to try and garner capital, applying for loans directly online. This saves trips to the bank, often which result in not the outcome you had wanted. 

Crowdsourcing Lending 

With the rise of social media came an increase in ‘crowdsourcing’, where small business owners attempt to secure funds from others for their ventures. 

While this won’t work for everyone, for artists or those involved in some sort of art or non-profit organizations, it proved to be a good way to build up additional capital. Since contributions are much smaller using this method however, it often will not work for those small businesses needing greater amounts of loaned money.

Alternative Business Lending 

Another trend that we saw occurring in 2012 was an increased in alternative business lending.

Credit unions are now starting to do the lions share of lending for small businesses and have become a reliable source that many start-up businesses turn to.

In addition to this, merchant cash advance companies are also increasing as a lending source, so that’s yet another thing for these entrepreneurs to consider. One of the primary reasons why this form of lending does tend to be preferred is due to the flexibility and speed it offers, as well as the use of technology. 

As more and more small business are becoming highly technologically savvy, it’s natural for them to turn to loan processes that are done entirely online. 

So there you have some of the top lending trends of 2012. If you’re a small business looking to get additional capital, make sure that you keep all of these points in mind and consider which is the best fit for you.