#United States #Chicago #Enova #OnDeck #Ocrolus

Overview

In the face of persistent economic uncertainty, small businesses are demonstrating remarkable resilience and maintaining a positive outlook for growth in 2025. A recent report, the Small Business Cash Flow Trend Report, conducted by OnDeck—a leading small business lender and part of Enova International—reveals key insights into the current sentiment among small business owners across the country.

Growth Potential Remains Strong

Despite slight declines in optimism from previous quarters, the report indicates that a significant majority of small businesses retain strong expectations for growth. An impressive 93% anticipate either significant or moderate growth in the upcoming year, only a slight drop from 94% in Q4 of 2024. This enduring confidence may stem from strategic adjustments many are implementing in response to ongoing challenges.

Preparing for Tariff Changes

Tariff policy changes have been a focal point of concern for small businesses. The report reveals that 55% of respondents have proactively taken preparatory measures to mitigate the potential operational and financial repercussions of these shifts. Many businesses are adjusting their inventory management strategies and seeking alternative funding sources to navigate the uncertain landscape effectively.

Embracing Technology and AI

The increasing integration of technology, particularly artificial intelligence, is transforming how small businesses operate. The findings show that 69% of small businesses utilize AI tools frequently, primarily to enhance their marketing efforts. This appetite for innovation demonstrates a commitment to not only weathering economic changes but thriving in a technology-driven marketplace.

The Shift in Lending Preferences

In a notable trend, 76% of small businesses are opting to bypass traditional banks, choosing instead to collaborate with non-bank lenders for their financing needs. This marks an all-time high, highlighting a shift in trust and accessibility within the lending landscape. Many small entrepreneurs prefer the speed and flexibility that alternative lenders provide, which is crucial for their operational demands.

Expert Insights

Jim Granat, Co-President of Small Business at Enova, remarks on the resilience of the small business community: "They are working diligently to prepare themselves to handle various environmental factors such as tariffs. Whether they need extra capital for inventory or assistance with cash flow challenges, OnDeck is committed to offering reliable financing solutions."

Similarly, David Snitkof, SVP of Growth at Ocrolus, points out the importance of agile funding solutions during rapidly evolving macroeconomic conditions. He emphasizes how AI-driven analytics can enhance lenders' ability to assess real-time cash flow data, thereby helping to identify qualified businesses, improving access to capital needed to navigate uncertainty.

Survey Methodology

The conclusions drawn from the report are based on comprehensive responses from 437 small businesses that have taken out working capital loans, alongside a broader analysis of over 2 million small business applications for financing over the previous 15 months. This nationwide survey was conducted between February 17-27, 2025, providing a robust view of current small business attitudes.

Company Information

OnDeck has been a pioneer in online lending to small businesses since its establishment in 2006, leveraging data analytics and technology to provide swift and effective financial solutions. With a diverse portfolio catering to various industries, the company stands out as a trusted partner for small business owners.

Enova International, publicly traded under the NYSE, operates to serve consumers and small businesses that traditional banks may overlook. Over the past two decades, it has provided more than $61 billion in loans, drawing on advanced analytics and machine-learning capabilities.

For further information about this report and the trends in small business financing, you can visit ondeck.com/small-business-trends. This data is instrumental in understanding the evolving landscape of small business growth and the factors influencing financial decisions heading into the future.