Dublin, Dec. 06, 2024 (GLOBE NEWSWIRE) -- The "Unsecured Business Loans Market Report 2024" has been added to ResearchAndMarkets.com's offering.
The unsecured business loans market size has grown rapidly in recent years. It will grow from $4.5 trillion in 2023 to $5 trillion in 2024 at a compound annual growth rate (CAGR) of 11%. The growth during the historic period can be attributed to the increasing number of small and medium-sized enterprises (SMEs), the rise of fintech and alternative lenders, prevailing economic conditions, and growing competition among lenders.
The unsecured business loans market size is expected to see rapid growth in the next few years. It will grow to $7.67 trillion in 2028 at a compound annual growth rate (CAGR) of 11.3%. The growth during the forecast period can be attributed to rising awareness and acceptance of unsecured business loans, increasing digitization within the industry, improved access to capital for small businesses, adoption of supportive government regulations, and easier credit access from financial institutions.
Key trends in this period include digital transformation and fintech innovation, product advancements, sophisticated technologies in loan processing, blockchain technology, and innovations in online lending platforms.
The anticipated growth in small and medium-sized enterprises (SMEs) is expected to drive expansion in the unsecured business loans market. SMEs are defined by specific revenue, asset, or employee thresholds. The rise in SME numbers is fueled by economic growth, job creation, supportive government policies, and evolving social and community needs. Unsecured business loans enable SMEs to address various financial requirements without the need for collateral, facilitating growth, operational efficiency, and financial management. For example, according to the European Commission (EC), a Belgium-based executive body of the European Union, the number of SMEs in the European Union grew by 2.7% in 2022, with notable increases in several member states. Consequently, the growth in SMEs is contributing to the expansion of the unsecured business loans market.
Leading firms in the unsecured business loans market are concentrating on offering specialized loans, such as unsecured business loans for micro, small, and medium-sized enterprises (MSMEs), to help achieve business objectives and stimulate economic development. These loans do not require collateral, relying instead on the creditworthiness and financial stability of the business and its owners. For instance, in July 2023, Godrej Capital, an India-based financial services company, introduced unsecured business loans tailored specifically for MSMEs. These loans are designed to meet the distinct financial needs of various businesses, from startups to established enterprises, and feature innovative repayment structures that align with the cash flow cycles of companies, facilitating more manageable repayment schedules. This initiative addresses the specific challenges faced by businesses in accessing flexible financing options.
In June 2024, Ashv Finance, an India-based non-banking financial company (NBFC), entered into a partnership with HDFC Bank, the terms of which were not disclosed. This collaboration aims to enhance the lending capabilities of both Ashv Finance and HDFC Bank within the micro and small enterprises (MSE) sector. HDFC Bank, a leading provider of banking and financial services in India, offers a comprehensive range of products, including unsecured business loans.
Major companies operating in the unsecured business loans market are Bank of America Corporation, Wells Fargo and Co., Bank of China Limited, American Express Company, Deutsche Bank AG, HDFC Bank Ltd., Standard Chartered PLC, Bajaj Finserv Ltd., Axis Bank Ltd., Bank of Ireland Group PLC, Enova International Inc., Hero FinCorp Ltd., Bluevine Inc., Poonawalla Fincorp Ltd., Starling Bank, Funding Circle Holdings PLC, OnDeck Capital, National Funding Inc., Rapid Finance, Biz2Credit Inc., Clix Capital Services Private Limited.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Markets Covered:
- By Type: Term Business Loan; Overdrafts; Loan On Business Credit Cards; Working Capital Loan; Other Types
- By Provider: Banks; Non-Banking Financial Company (NBFCs); Credit Unions
- By Application: Banking, Financial Services, And Insurance (BFSI); Retail; Information Technology (IT) And Telecom; Healthcare; Manufacturing; Energy And Utility; Other Applications
- By End-User: Small And Medium-Sized Enterprises; Large Enterprises
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 175 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $5 Trillion |
| Forecasted Market Value (USD) by 2028 | $7.67 Trillion |
| Compound Annual Growth Rate | 11.3% |
| Regions Covered | Global |
Key Topics Covered:
1. Executive Summary
2. Unsecured Business Loans Market Characteristics
3. Unsecured Business Loans Market Trends and Strategies
4. Unsecured Business Loans Market - Macro Economic Scenario
5. Global Unsecured Business Loans Market Size and Growth
5.1. Global Unsecured Business Loans Market Drivers and Restraints
5.2. Global Unsecured Business Loans Historic Market Size and Growth, 2018-2023, Value ($ Billion)
5.3. Global Unsecured Business Loans Forecast Market Size and Growth, 2023-2028, 2033F, Value ($ Billion)
6. Unsecured Business Loans Market Segmentation
6.1. Global Unsecured Business Loans Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- Term Business Loan
- Overdrafts
- Loan on Business Credit Cards
- Working Capital Loan
- Other Types
6.2. Global Unsecured Business Loans Market, Segmentation by Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- Banks
- Non-Banking Financial Company (NBFCs)
- Credit Unions
6.3. Global Unsecured Business Loans Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- Banking, Financial Services, and Insurance (BFSI)
- Retail
- Information Technology (IT) and Telecom
- Healthcare
- Manufacturing
- Energy and Utility
- Other Applications
6.4. Global Unsecured Business Loans Market, Segmentation by End-User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- Small and Medium-Sized Enterprises
- Large Enterprises
7. Unsecured Business Loans Market Regional and Country Analysis
7.1. Global Unsecured Business Loans Market, Split by Region, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
7.2. Global Unsecured Business Loans Market, Split by Country, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
8-29. Country Specific Unsecured Business Loans Market Analysis
30. Unsecured Business Loans Market Competitive Landscape and Company Profiles
30.1. Unsecured Business Loans Market Competitive Landscape
30.2. Unsecured Business Loans Market Company Profiles
30.2.1. Bank of America Corporation
30.2.2. Wells Fargo and Co.
30.2.3. Bank of China Limited
30.2.4. American Express Company
30.2.5. Deutsche Bank AG
31. Unsecured Business Loans Market Other Major and Innovative Companies
31.1. HDFC Bank Ltd.
31.2. Standard Chartered
31.3. Bajaj Finserv Ltd.
31.4. Axis Bank Ltd.
31.5. Bank of Ireland Group
31.6. Enova International Inc.
31.7. Hero FinCorp Ltd.
31.8. Bluevine Inc.
31.9. Poonawalla Fincorp Ltd.
31.10. Starling Bank
31.11. Funding Circle Holdings PLC
31.12. OnDeck Capital
31.13. National Funding Inc.
31.14. Rapid Finance
31.15. Biz2Credit Inc.
32. Global Unsecured Business Loans Market Competitive Benchmarking
33. Global Unsecured Business Loans Market Competitive Dashboard
34. Key Mergers and Acquisitions in the Unsecured Business Loans Market
35. Unsecured Business Loans Market Future Outlook and Potential Analysis
35.1 Unsecured Business Loans Market in 2028 - Countries Offering Most New Opportunities
35.2 Unsecured Business Loans Market in 2028 - Segments Offering Most New Opportunities
35.3 Unsecured Business Loans Market in 2028 - Growth Strategies
For more information about this report visit https://www.researchandmarkets.com/r/4ns5gn
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