Online Search is King for How Merchants Shop For Funding, Survey Reveals

Perhaps the most surprising statistic to come out of a 2025 small business lending survey conducted by IOU Financial is that 12% of merchants said they started their search for business funding options from a cold call. But as one might expect, phone calls are not necessarily the direction in which business is moving. Forty-one percent of respondents, for example, complained that they received too many phone calls from multiple reps.

The number one origin point—far above cold calls (12%), friends/referrals (8%), and social media (7%)—was online search (63%). And they’re not just looking at the first website and firing off a form. Fifty-eight percent, for example, said that online reviews were among the most valuable factors in choosing the right business funding provider, while loan calculators and comparison websites/tools also weighed heavily at 49% and 40%, respectively.

Historically, online search primarily meant Google, but according to a TD Bank survey, 30% of small business owners are already turning to AI assistants like ChatGPT for insights on financial health or financing.

And most merchants skip their bank. “More than 70% of small business owners do not apply for business funding with their bank before exploring non-bank options,” the IOU survey found. “This trend highlights a major shift in trust and preference away from traditional banks and toward alternative lenders—which could be driven largely by the desire for speed, flexibility, and ease of access.”

Carl Brabander, EVP of Strategy for IOU Financial, discussed some of the recent findings of this survey at Broker Fair 2025 this past May in New York City.