San Francisco, CA (PRWEB) October 26, 2012
The New York Federal Reserve released poll results on October 12 showing that during the first half of 2010:
Small businesses continue to have a critical need for credit at this point in the economic recovery. However, recent contractions in borrowing have limited the ability of small businesses to expand and to hire needed personnel.
The report presents new data from 426 regional small businesses (from New York, New Jersey, Connecticut and Pennsylvania) on their financial well-being, credit needs and recent borrowing experiences.
This report points to three potential causes of the recent decline in small business lending: Weak demand, weakened applicant quality, and restricted credit availability. It finds evidence of existing demand, weakened business finances, and credit gaps.
Kausar Hamdani, senior vice president and Community Affairs officer at the Federal Reserve Bank of New York explains that the main purpose of this poll was to hear directly from small businesses about their recent credit experiences and to analyze them systematically in order to learn more about where the largest obstacles exist. Sunovis Financial, and its division The Lending Circle, helps small businesses with lending needs and access to credit, offers solutions to the continuing difficult situation. The company works with banks nationwide who can lend, and also have a number of alternative solutions.
The recent poll clearly shows that many of these obstacles lie in the interface between banks and small business. Unsuccessful applicants for credit were often unable to put themselves forward in the best light to banking evaluation, the poll showed. Banks were most interested in current sales and profit, while many small businesses based their applications on previous credit relationships, the poll revealed. Working with a company like The Lending Circle can help bridge the gap successfully between borrower and bank.
About The Lending Circle
The Lending Circle, a division of Sunovis Financial, addresses how small businesses should interface with banks. There ARE active and strong lenders today, who have a wide range of appetite and specialties. The Lending Circle taps into and works with these lenders nationwide to help borrowers.