Small business finance sector reflects on what’s in the rear view mirror and is optimistic for the rest of 2022

Jhe small business finance industry is looking at expected growth for the rest of the year, despite new challenges ahead. With massive government aid fading in the rearview mirror, some industry players have now had time to reflect on its impact as they move forward into the future.

Bob Squiers from Meridian Leads expressed his views on the matter: “A lot of our customers, mainly ISO stores, a lot of them have converted and started selling and showcasing the government programs. So in that sense, it kind of helped keep these guys afloat, helped keep our business going. A lot of what we do on the marketing side is translated for these government programs. But it also crushed cash advance demand.

In some cases, government funding has helped merchants repay their pre-existing obligations in a timely manner. Matthew Washington, Founder and CEO of Moneywell GRP, said, “An educated business owner uses the available financing options as they see fit at the time. Someone waiting to get an SBA or EDIL is more likely to take a bridging product to get through that time frame,” he said. “As long as you work with the trader and have good products and know what’s up, I think that’s only helped in some cases.”

Trucking has become one of the number one areas that has accounted for a large percentage of submissions during the pandemic, according to industry insiders. However, with rising gasoline prices, trucking activity may decline. Other businesses such as restaurants, where only a third received government funding last year, are in desperate need of funding.

“There are still tons of restaurants that haven’t received their funding yet. So we could see a lot of exposure in this industry,” said Michael Yunatan of Specialty Capital. “But overall I really think we’ll see an upward trend in our numbers across the board.”

“We really think the industry is growing as a whole,” Yunatan said. “Even though we’re a new player in the space, we’ve grown.”

Chad Otar, Founder and CEO of Lending Valley, said: “We have to continue to watch the Federal Reserve’s rising interest rates, we have to make sure we’re not heading into a recession, we have to make sure that we are able to have the capital fully ready, so that we can deploy at a reasonable pace.

Otar hailed the indirect benefits of big tech companies operating in the space with a competing product, saying the presence of PayPal and Amazon helps raise awareness of the industry as a whole.

“And now that Kabbage is also back, since they’ve partnered with American Express, that’s going to help us push the product further to the mainstream,” Otar said. “So I think there will be growth in the industry.”

Last modification : April 15, 2022

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