U.S. Small Business is in a growth phase. Loan approval has increased and that signals to higher spending by business owners. The volume of financing to small businesses is measured by Thomson Reuters/PayNet Small Business Lending Index. The index has seen 18 percent lending rise on January in comparison to last year.
This jump of PayNet signals to 18th consecutive double-digit rise. The U.S. economy is expected to show very strong growth but when exactly that will happen cannot be predicted. The signs are just indications of beginning of the real recovery. Also, there are good reports of improvement in employment, manufacturing and overall economic growth.
GDP growth has been between 2 to 2.5 percent. This reveals that the economy grew at 3 percent annual rate during last quarter. PayNet survey is a good indicator that growth will continue to take place at-least for coming few months. PayNet can track borrowing of many US businesses and the index correlates with changes in US GDP.
Small businesses account for job growth and PayNet data also suggests that they are paying back their debts with relative ease. Also, accounts in severe delinquency, 90 days behind in payments, fell 0.37 percent in January compared to 0.38 percent in December. However, accounts that are in moderate delinquency rose to 1.57 percent on January compared to 1.55 percent in December. Accounts that are behind by 180 days or more have decreased to 0.51 percent compared to 0.54 percent in December.
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 firstname.lastname@example.org