64% of Small Business Owners Will Apply for Financing in the Next 12 Months Says TD Bank
May 9, 2024
Delaney Sexton
Contributing Editor
64% of Small Business Owners Will Apply for Financing in the Next 12 Months Says TD Bank
“One of the most important relationships business owners can develop is with their bank,” Amy Dinkar-Patel, Head of Small Business & Commercial Distribution, notes. “The right customer-banking relationship fosters trust, unlocks tailored financial solutions, and ensures a deeper understanding of the business’s unique needs. The relationship between a small business owner and their bank isn’t just a financial necessity—it’s the cornerstone of enduring success, allowing business owners to weather inevitable storms with confidence.”
A small business survey released by TD Bank found that small business owners heavily rely on and trust their primary financial institutions for their business needs. Less than 20% of small business owners considered changing their primary financial institution that they use for their business in the next year. The survey also found that 95% of small business owners who will be applying for a loan or line of credit in the next 12 months are confident that they will be approved through a bank.
Almost two-thirds of small business owners shared that they will have additional credit or financing needs in the next year. Half reported that the financing would be used to maintain company operations. Expansion was another key reason for seeking financing. Almost half would use the funding to expand into new market verticals, and 45% would launch a new product or service line.
Customer service is one of the top functions they look for in a bank, with 62% of small business owners stressing its importance. Small business owners also prioritize competitive rates (64%) and technical products and services that help them with managing their business (49%).