The economy is fresh from a recession and the signs of improvement are everywhere. Perhaps one of the best indicators is the recent Biz2Credit Lending Index report for July released by Biz2Credit. This monthly report, compiled from the approval results of 1,000 applications taken by Biz2Credit, shows lending approval rates of big banks, small banks, credit unions, and non-traditional lenders as compared to previous months. These results also offer other indicators that, as a whole, can lead us to believe that the small business loan marketplace and the economy as a whole could indeed be in the recovery phase.
Big Bank Lending is Up
This report recently released by Biz2Credit shows that approval rates for small business loans at big banks increased steadily in 2014. One-in-five applications are granted. The increase is not huge, but it is an increase none the less. This is an awesome thing, coupled with the fact that, although down slightly, approval rates at small banks are still over 50%.
Non-Traditional Lending is Holding
Alternative lending is shrinking a bit. This could be an indicator that the days of short-term, high interest lending are slipping away as borrowers become less desperate.
Many companies are reporting higher EBITDA (Earnings before Interest, Tax, Depreciation, and Amortization) numbers. This is one reason that big banks are approving more loans, as it is an indicator businesses are doing better. The increase in these numbers can also work to increase entrepreneur confidence in the fact that they can actually borrow to expand and grow and have the money to pay back the loan.
Biz2Credit helps borrowers looking to start a business or expand every step of the way when it comes to financing. Its network of over 1,300 lenders all have something to offer and we can help borrowers find the perfect lender and products for their needs. Visit Biz2Credit for more information.