CHICAGO, May 23, 2024
/PRNewswire/ -- Small businesses feel increasingly optimistic
about future growth as expenses decrease, according to the latest
Small Business Cash Flow Trend Report from OnDeck Capital,
the leading small business lending company at Enova (NYSE: ENVA)
and Ocrolus, the document AI and cash flow analytics platform for
lenders.
Key findings include:
- Optimism and Growth. A large majority of small
businesses continue to feel optimistic about business growth
opportunities over the next 12 months, with 93% expecting moderate
or significant growth, a slight uptick (1%) from Q4 2023.
- Financial Performance. Consistent with seasonal
trends, revenue has decreased from its peak in Q4 2023, offset by
decreasing expenses, resulting in a slightly higher
revenue-to-expense ratio. Businesses continue to invest in
employees, resulting in the payroll-to-revenue ratio increasing
slightly to 19.5% in Q1 2024.
- Cash Flow Management. Businesses are managing cash
flows through a variety of approaches, most commonly using a
business line of credit (56.2% of businesses), while many also
report delaying payment to themselves and family members until
other bills have been paid (43.1%).
- Access to Credit. Banks appear to be limiting their
lending, with nearly 40% of small businesses that have been in
operation for over 20 years reporting they were denied a loan from
a big bank. The percentage of transactions moving through payment
apps instead of traditional payment methods continues to increase,
with 26% of businesses reporting inflows from Venmo, Zelle or
CashApp, which is an all-time high for this report.
"Small businesses continue to show resilience and believe in
their potential, with their outlook remaining positive as they
continue to successfully navigate challenges related to inflation
and managing cash flow," said Cory
Kampfer, Co-President of Small Business Lending at OnDeck.
"Flexible financing options can make all the difference for small
businesses, and help to manage today's business environment."
"The small business landscape is constantly evolving and
requiring lenders to stay attuned to the needs of borrowers," said
David Snitkof, SVP of Growth at
Ocrolus. "Access to real-time cash flow data offers accurate
insights into a business' financial wellbeing, empowers informed
decision-making, and helps lenders identify opportunities for new
solutions that bolster small businesses."
Key demographic findings include:
- Nearly all (92%) of family-run businesses are first-generation
business owners, and a majority (58%) plan to pass the business on
to a family member in the future.
- While nearly all surveyed small businesses have annual revenues
under $10 million, veteran-owned
small businesses had the highest percentage of self-reported annual
revenues, ranging between $1M and
$10M.
The Q1 2024 report is based on quarterly survey responses
from 422 small businesses with working capital loans from OnDeck
and cash flow data from over 1.9 million small business
applications, and provides deeper insights into the health of small
businesses across all regions.
About OnDeck®
OnDeck®, part of Enova International, is
the proven leader in transparent and responsible online lending to
small businesses. Founded in 2006, the company pioneered the use of
data analytics and digital technology to make real-time lending
decisions and deliver capital rapidly to small businesses online.
Today, OnDeck offers a wide range of term loans and lines of credit
customized for the needs of small business owners. OnDeck has
provided loans to customers in 900 different industries nationwide.
For more information, visit www.ondeck.com.
About Enova
Enova International (NYSE: ENVA) is
a leading financial services company with powerful online lending
that serves small businesses and consumers who are underserved by
traditional banks. Through its world-class analytics and machine
learning algorithms, Enova has provided more than 10 million
customers with over $55 billion in
loans and financing. You can learn more about the company and its
portfolio of businesses at www.enova.com.
About Ocrolus
Ocrolus is a document AI platform that
enables faster and more accurate financial decision-making. The
company analyzes documents with over 99% accuracy, regardless of
format or quality, supporting over a thousand document types,
including bank statements, pay stubs, and tax forms. Ocrolus
provides a trusted solution to detect fraud, analyze
cash flows and income, and streamline decisions for 400+ clients
across a number of use cases. Customers such as Enova, PayPal,
Brex, CrossCountry Mortgage, Plaid, and SoFi leverage Ocrolus
automation to build delightful user experiences. To learn more,
visit Ocrolus.com.
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SOURCE Enova International, Inc.