Small Business Lending is at a standstill according to a study of Paynet. Lending remained virtually unchanged in February as Thomson Reuters/PayNet Lending Index showed 98.3 in February that is just a little up from 98.2 in January. However, the index was at 110.5 in December 2011.
Paynet analysis found that lending reached the same level as it was during the summer of 2011. The index is based on new commercial loans. The lenders already present in Paynet’s database are also considered while doing the analysis.
Business growth is slowing according to its study. Borrowing increased just 14 percent as compared to a year earlier. This is the lowest 12-month growth rate. It is clearly a sign of caution for small business owners. The U.S. economic growth according to economists has slowed 2 to 2.5 percent in first quarter that is down from 3 percent annual rate in the previous quarter. Ben Bernanke, Federal Reserve Chairman, also said that in order to bring down the 8.3 percent jobless rate, growth has to accelerate.
PayNet tracks millions of U.S. businesses and it is co-related to U.S. Gross Domestic Product (GDP). A separate PayNet finding also revealed that businesses are making repayment of debts with much ease.
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