How are business loans for millennials different than say, business loans for generation X. Flashback to a time in corporate America 1990. Prospective entrepreneurs walked into banks with dreams and hopes of turning a simple business idea into a fortune 500 company. Individuals would draft business plans or sometimes just a short conversation about what they would like to do. A banker would perform a casual investigation into the background and marketable concept of that plan and possibly issue out a loan to get things moving.
Fast forward to the year 2017 and that same entrepreneur may have a less than similar experience. Millennials are learning first hand that business loans aren’t as readily available as they were in prior years and business loans for millennials are a rare occurrence. In a saturated market of same concepts and a lack of financial literacy, lending institutions aren’t as keen to sign approvals for start-up businesses looking for funding. Most financial institutions approve less business loans for millennials than any other generation.
It is age, inexperience or bias? What do online lenders see in millennials?
A Wall Street Journal report listed Millennials, individuals under 30, as being the least entrepreneurial generation in the last few decades. Though most Millennials with start-up companies view themselves as entrepreneurs, the application of said entrepreneurial spirit doesn’t quite follow and so neither do the business loans for millennials.
Young adults looking for financial backing are viewed to be a risky investment and are typically turned away. The lack of discipline, patience and a sense of entitlement has created a gaping hole in the development of young adults as business leaders. College graduates may be armed with the base knowledge of how a company is formed, however it is their parents who are seen as the disciplined entrepreneur that is capable of taking an idea from its inception into fruition.