It’s looking that way
While lately it seems as though small businesses haven’t been dealt the most desirable hand, forecasts are showing that there is indeed light at the end of the tunnel.
Recent surveys predict the financial lending market will be offering up greater opportunities for small businesses to get back into the game. Financial information provider, Sageworks, has just released its most recent private company report showcasing “the average risk of business loan default has dropped to 4.1 percent from 5.1 percent last April.”
What’s more, Sageworks Chairman Brian Hamilton shared, “The improvement in default rates coupled with healthy sales and profitability show that private companies may be well positioned to borrow”. The future seems to be looking much brighter in terms of small business lending, however micro businesses with revenues less than $500,000 are still facing serious roadblocks in their efforts to obtain the capital they need.
But more work to be done…
The Q2 Private Capital (PCA) Index recently released by Pepperdine and Dun & Bradstreet Credibility Corp. indicates that small businesses are still currently facing an uphill battle. “The results from this second quarter study show lack of financing consistently hinders growth at the smallest companies, which in turn restricts their ability to hire. These businesses need to access capital to fully stabilize the economy,” shared Dun & Bradstreet Credibility Corp. Chairman and CEO Jeff Stibel.
This very lack of financing has largely contributed to the inability of small businesses to hire, in turn halting their hopes of expansion. “Ultimately, we want to see a faster recovery, since these companies represent the foundation of America’s businesses. Their recovery and stability is paramount to wider economic improvement,” said Stibel. While the recovery is taking what feels like its sweet time, small business lending continues to steadily improve giving small business owners hope for the future.