The last four years have been rough for small business owners. They’ve navigated the depths of a recession, a few well-placed storms and plenty of justified hand-wringing about national finances from California to Maine. Difficult probably isn’t a strong enough term.
As the country rumbles back on to the rails, though, there’s on encouraging sign to share. Recent research done here at Direct Capital unearthed the fact that from 2008-2012, the average credit profile for small business owners rose in 45 of the 50 states across America. It’s a remarkable number given the state of the economy over that stretch.
“Business owners today are much more aware of how important it is to maintain a strong credit profile and that is reflected in the data,” said Direct Capital Vice President of Marketing Stephen Lankler. “That was not the case five to seven years ago when it was much easier for a business to access credit.”
Lankler said the recession played a significant role in this heightened awareness, coupled with a significant rise in products targeted at giving people on demand access to their credit profile.
“As a result of the financial crisis, major lenders – including banks – have become much more restrictive in extending credit to business owners,” he said. “In response, business owners have become more vigilant in maintaining strong credit profiles and a flood of products have been introduced to help them do so.”
You’ll find the infographic below.
Photo credit to iStock