An independent survey, compiled by FinTech company Iron Capital Equities, confirmed the ‘Need to Hire Staff’ as the top reason SMBs are applying for debt financing.
The data was aggregated from LineofCreditDepot.com’s standard small business application from November 2021 - December 2021. When asked in a multiple-choice, ‘Specific Use of Funds’, SMBs chose a required response from a list of: Equipment Purchase, Refinancing Debt, General Working Capital, Need to Hire Staff. From a dataset of over 2,500 applicants, about 68% overall selected the option, ‘Need to Hire Staff.’
“With our FinTech software, we can spot trends over time in the data from our applicants. It gives us valuable insight into the needs of small businesses and allows us to more accurately cater to those pools of potential clients,” said Matthew Elling, Co-founder, Iron Capital Equities.