- 163% of merchants start with online search, versus 12% cold calls, 8% referrals and 7% social media.
- 258% rate online reviews among the most valuable factors; 41% complained of too many calls.
- 3More than 70% do not apply at their bank before exploring non-bank options.
Online search is overwhelmingly where merchants begin looking for business funding, according to a 2025 small business lending survey by IOU Financial.
Where searches start
Sixty-three percent of respondents said online search was their starting point, far ahead of cold calls (12%), friends and referrals (8%) and social media (7%). The cold-call figure was the survey's most surprising result, but phone outreach is not where the market is going: 41% of respondents complained of too many calls from multiple reps.
What shapes the decision
Merchants do more than click the first site. Fifty-eight percent said online reviews were among the most valuable factors in choosing a provider, while loan calculators and comparison sites or tools were cited by 49% and 40%.
Search itself is changing. Historically that meant Google, but a TD Bank survey found 30% of small business owners are already turning to AI assistants such as ChatGPT for insights on financial health or financing.
Skipping the bank
Most merchants do not start at their bank. The IOU survey found that over 70% of small business owners look at non-bank options before they ever apply for funding at their bank. IOU said the trend points to a shift in trust and preference toward alternative lenders, possibly driven by a desire for speed, flexibility and ease of access.
Carl Brabander, EVP of Strategy at IOU Financial, discussed the findings at Broker Fair 2025 in New York City in May.
Source reporting: deBanked.
