New Report: New Year Brings Increased Optimism Around Growth Expectations for Main Street Businesses

Core Insights - Small businesses are increasingly optimistic about growth in 2025, with 94% anticipating significant or moderate growth, a 2% increase from Q3 2024 [7] - There is a notable shift towards alternative lenders, with 76% of small businesses opting to bypass traditional bank loans, up from 62% in Q4 2023 [7] Group 1: Small Business Optimism - The Small Business Cash Flow Trend Report indicates a growing confidence among small businesses, translating into plans for expansion and hiring [2] - The report is based on responses from 454 small businesses and over 2 million applications for working capital financing in the past 15 months [2] Group 2: Funding and Underwriting Trends - Fast and flexible funding solutions are critical for small businesses as they navigate shifting market conditions [2] - Small business funders are reevaluating their underwriting processes to incorporate cash flow data, which helps qualify applicants with promising financial performance [2] Group 3: Challenges Faced by Small Businesses - Inflation is cited as a top concern by 37% of small businesses, while 30% identify cash flow as their primary challenge in the current economic environment [7]