Biz2Credit Identifies Big Banks That Most Frequently Rejected Small Business Funding Requests in First Half of 2012
Biz2Credit, the leading online credit marketplace, has released the results of a study it made of 1,000 small companies denied loans from their existing banks in the first half of 2012. The analysis found that small business customers of Bank of America, JP Morgan Chase, Wells Fargo, and TD Bank were the most frequently rejected applicants for funding.
"Small business owners have been saying for quite some time that big banks have been unwilling to lend to them. This survey proves it," said Rohit Arora, CEO of Biz2Credit, who oversaw the research based on applications made on the platform over the first six months of 2012. "The big banks ($10B+ in assets) on this list frequently reject the funding requests of their own customers."
These results come as institutions such as Bank of America and JP Morgan Chase claim that they are hiring new staff specifically to address the needs of small business borrowers.
"It's ironic that Bank of America has advertised that they are friendly to small business lending, but the opposite is the case. They have been the most rigid in their loan criteria and now are cutting credit lines," added Arora, one of the country's leading experts on small business finance.
Percentages of Total Small Business Loan Rejections Nationwide
Bank of America 13.5%
JP Morgan Chase 11.6%
Wells Fargo 11.2%
TD Bank USA 2.9%
PNC Bank 2.3%
The small businesses examined in this analysis included only businesses in operation for more than two years, had credit scores of 650 or higher, and had an existing banking relationship. The information is based on actual loan applications made during 2012.
Founded in 2007, Biz2Credit is a leading credit marketplace connecting small- and medium-sized businesses with lenders, service providers, and complementary business tools. The company matches borrowers to financial institutions based on business’ unique profile -- completed in less than four minutes -- in a safe, efficient, price-transparent environment. Biz2Credit’s network consists of 1.6 million users, 1,100+ lenders, credit rating agencies such as D&B and Equifax, and small business service providers including CPAs and lawyers. Having secured more than $600 million in funding throughout the U.S., Biz2Credit is widely recognized as the #1 online credit resource for small businesses.