As the US economy is expanding it is obvious that small business take more risks. Commercial loan volume and leases to small businesses have increased consistently over last 15 months. But then yet very few people are really bullish about it as they are stuck in fear of Euro debt crisis.
The Small Business Lending Index (SBLI) measures volume of new commercial loans and leases to small businesses. It is released at the end of each month and it is found in reports that small businesses are responding to changes in economic conditions at a more rapid pace than larger businesses. The SBLI is a reliable indicator of the economy and anywhere between 2 – 5months. This index is trending higher and it suggests that there is growth in US economy. The GDP will be resorting to a higher graph in coming months.
Keeping in view the rising trend, small business owners now can invest and take decisions in a single day. During recessionary days, small businesses were delinquent about loans but now with the upward trend, it is more convenient for them to find loans. Small business loans are indicators of where the economy stands today. That SME loan volume is increasing is an indicator of a recovering economy.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com