The report accompanying the readings concluded that economic growth was boosting bigger banks’ lending to small businesses.
San Francisco, CA (PRWEB) November 14, 2012
The latest review of the Biz2Credit Small Business Lending Index, which is an analysis of 1,000 monthly small-business loan applications, showed that approval rates at bigger banks (defined as those banks which have $10 billion or more in assets) increased 30% in September 2012. The reading indicated that 14.2% of funding requests were approved by the bigger banks, an improvement over the 10.9% approved in August 2012. The September figure represents the highest approval rating percentage for big banks since the Index began readings in 2011.
Alternative lenders -- accounts receivable financiers, merchant cash advance lenders, Community Development Financial Institutions (CDFI), micro lenders, and others – increased their approval rates as well. These rose slightly to 64.6% from 64.5% in August. The September reading was the highest since the index began taking readings as well.
Smaller banks, however, saw approval rates lower in September, to 47.6% from 47.8% in August. Credit Unions also made fewer approvals, with their rate dropping to 52.4% from 54.9% in August.
The report accompanying the readings concluded that economic growth was boosting bigger banks’ lending to small businesses. "Lenders including Citibank, Sovereign and Citizens Bank are jumping back into small business lending. The economy seems to be improving slowly, and the improvement has been a factor in their willingness to lend to small businesses,” said Rohit Arora, Biz2Credit co-founder and CEO, who oversaw the research.
Small businesses may well wish to take advantage of these improved conditions to obtain credit, but they may wish to seek help in doing so. That is the mission of the Lending Circle, a division of Sunovis Financial.
About The Lending Circle
The Lending Circle, a division of Sunovis Financial, assists borrowers and small businesses with their lending needs. The Lending Circle deals with all things lending while Sunovis Financial specializes in SBA services for borrowers and small banks.