Dublin, December 6, 2024 (GLOBE NEWSWIRE) — The “Unsecured Business Loan Market Report 2024” was added to ResearchAndMarkets.com offer.
The unsecured business loan 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 over the historical period can be attributed to the increasing number of small and medium-sized enterprises (SMEs), the rise of fintech and alternative lenders, current economic conditions and increasing competition among lenders.
The unsecured business loan market size is expected to grow rapidly in the coming years. It will reach $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 increasing awareness and acceptance of unsecured business loans, increasing digitalization within the sector, better access to capital for small businesses, adoption of favorable government regulations and easier access to credit from financial institutions.
Key trends during this period include digital transformation and fintech innovation, product advancements, sophisticated loan processing technologies, blockchain technology, and innovations in online lending platforms.
The expected growth of small and medium-sized enterprises (SMEs) is expected to drive the expansion of the unsecured business loan market. SMEs are defined by specific thresholds of revenue, assets or employees. The increase in the number of SMEs is fueled by economic growth, job creation, favorable government policies and changing social and community needs. Unsecured business loans enable SMEs to meet various financial needs without the need for collateral, thereby facilitating growth, operational efficiency and financial management. For example, according to the European Commission (EC), an executive body of the European Union based in Belgium, the number of SMEs in the European Union increased by 2.7% in 2022, with notable increases in several member states . Therefore, the growth of SMEs contributes to the expansion of the unsecured business loan market.
Leading companies in the unsecured business loans market are focused on offering specialized loans, such as unsecured business loans for micro, small and medium enterprises (MSMEs), to help them achieve their business goals and stimulate economic development. These loans do not require collateral, but rather depend on the creditworthiness and financial stability of the business and its owners. For example, in July 2023, Godrej Capital, an India-based financial services company, introduced unsecured business loans specifically tailored to MSMEs. These loans are designed to meet the distinct financial needs of diverse businesses, from startups to established businesses, and feature innovative repayment structures that align with businesses’ cash flow cycles, facilitating more manageable repayment schedules. This initiative addresses the specific challenges businesses face in accessing flexible financing options.
In June 2024, Ashv Finance, a non-banking financial company (NBFC) based in India, entered into a partnership with HDFC Bank, the terms of which were not disclosed. This collaboration aims to enhance the lending capabilities of Ashv Finance and HDFC Bank in the micro and small enterprises (MSE) sector. HDFC Bank, a leading banking and financial services provider in India, offers a comprehensive range of products including unsecured business loans.
Major companies operating in the unsecured business loan 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 historical and forecast market growth by geography.
Markets covered:
- By type: Commercial term loan; Discoveries; Loan on professional credit cards; Working capital loan; Other types
- By provider: banks; Non-Banking Financial Company (NBFC); Credit unions
- By application: banking, financial services and insurance (BFSI); Retail; Information technology (IT) and telecommunications; Health care ; Manufacturing; Energy and utilities; Other apps
- By end user: small and medium businesses; Large companies
Key attributes:
| Report attribute | Details |
| Number of pages | 175 |
| Forecast period | 2024 – 2028 |
| Estimated market value (USD) in 2024 | 5 trillion dollars |
| Projected Market Value (USD) by 2028 | $7.67 trillion |
| Compound annual growth rate | 11.3% |
| Regions covered | Global |
Key topics covered:
1. Summary
2. Characteristics of the unsecured business loan market
3. Unsecured Business Loan Market Trends and Strategies
4. Unsecured Corporate Loan Market – Macroeconomic Scenario
5. Global Unsecured Business Loan Market Size and Growth
5.1. Drivers and Restraints of the Global Unsecured Business Loan Market
5.2. Global Unsecured Business Loan Market Historical Size and Growth, 2018-2023, Value ($ Billion)
5.3. Global Unsecured Business Loan Market Size and Growth, 2023-2028, 2033F, Value ($ Billion)
6. Unsecured Business Loan Market Segmentation
6.1. Global Unsecured Business Loan Market, Segmentation by Type, Historical and Forecast, 2018-2023, 2023-2028F, 2033F, Billion USD
- Term Business Loan
- Discoveries
- Loan on business credit cards
- Working capital loan
- Other types
6.2. Global Unsecured Business Loan Market, Segmentation by Vendor, History and Forecast, 2018-2023, 2023-2028F, 2033F, Billion USD
- Banks
- Non-banking financial company (NBFC)
- Credit unions
6.3. Global Unsecured Business Loan Market, Segmentation by Application, Historical and Forecast, 2018-2023, 2023-2028F, 2033F, Billion USD
- Banking, Financial Services and Insurance (BFSI)
- Retail
- Information Technology (IT) and Telecom
- Health care
- Manufacturing
- Energy and Utilities
- Other apps
6.4. Global Unsecured Business Loan Market, Segmentation by End User, History and Forecast, 2018-2023, 2023-2028F, 2033F, Billion USD
- Small and medium-sized businesses
- Large companies
7. Regional and Country Analysis of Unsecured Business Loan Market
7.1. Global Unsecured Business Loan Market Segment By Region, Historical and Forecast, 2018-2023, 2023-2028F, 2033F, Billion USD
7.2. Global Unsecured Business Loan Market, Split By Country, History and Forecast, 2018-2023, 2023-2028F, 2033F, Billion USD
8-29. Unsecured Business Loan Market Analysis by Country
30. Unsecured Business Loans Market Competitive Landscape and Company Profiles
30.1. Competitive Landscape of Unsecured Business Loan Market
30.2. Company Profiles of Unsecured Business Loans Market
30.2.1. Bank of America Company
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 Loan Market Other Major and Innovative Companies
31.1. HDFC Bank Ltd.
31.2. Chartered standard
31.3. Bajaj Finserv Ltd.
31.4. Ax 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. Financing Circle Holdings PLC
31.12. Capital on the bridge
31.13. National Finance Inc.
31.14. Fast financing
31.15. Biz2Crédit Inc.
32. Competitive Benchmarking of Global Unsecured Business Loan Market
33. Competitive Dashboard of Global Unsecured Business Loan Market
34. Top Mergers and Acquisitions in Unsecured Business Loan Market
35. Future Outlook and Potential Analysis of Unsecured Business Loans Market
35.1 Unsecured Corporate Loan Market 2028 – Countries with Most New Opportunities
35.2 Unsecured Corporate Loan Market 2028 – Segments Providing Most New Opportunities
35.3 Unsecured Corporate Loan Market 2028 – Growth Strategies
For more information on this report, visit https://www.researchandmarkets.com/r/4ns5gn
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source of market research reports and international market data. We provide you with the latest data on international and regional markets, key industries, largest companies, new products and latest trends.