January 11, 2021

Caity Roach
Editor

Main Street Monday — 56% of Small Businesses Plan on Using Online Lending Options in 2021

According to the annual JPMorgan Chase Business Leaders Outlook Survey, 47% of small businesses believe economic uncertainty created by the COVID-19 pandemic will remain their top challenge in 2021. However, small businesses are showing resilience by remaining nimble and accelerating digital adoption in order to prepare. One way small businesses have already begun adapting is by increasing usage of online lending options.

The JPMorgan Chase survey found that nearly half (44%) of small businesses have explored online lending in the past year, with 25% procuring an online loan. In 2021, 56% say they plan on applying for a business loan online if they find themselves in need of capital. 

Here are some other ways small businesses are preparing for future economic uncertainty:

  • Nearly one-third (31%) of small businesses have increased cash reserves as a cushion for potential future disruption.

  •  More than half (56%) of small and midsize businesses have increased their usage of online banking and treasury tools.

  • 23% of small businesses have moved towards contactless payment options and another 20% expect to do so in 2021.

  • 1 in 10 small businesses have changed their business model to have 100% of their sales come from e-commerce and 12% plan on moving to an e-commerce model by the end of the year. 

  • Two-thirds (66%) of small businesses report taking action in preparation for potential fraudulent cyberattacks.

  • 47% of small business owners say that they plan on placing a greater value on their community, relationships with employees, and digital solutions for their businesses.  

“Businesses have weathered many storms over the past year, displaying impressive levels of creativity and adaptability as they shifted to new operating models, distribution channels and technologies,” says Jim Glassman, head economist for JPMorgan Chase. “The challenges aren’t over, but their tenacity has helped sustain economic momentum and offers optimism for recovery in 2021.” 

Sources: 
2021 Business Leaders Outlook