We like to keep you up-to-date on what’s going on in small business borrowing. When you go looking for financing, it can be very reassuring to know that the industry isn’t folding down around you, after all.
So we turn to a report from Thomson Reuters and PayNet, who tell us that the Small Business Lending Index the two companies maintain has risen 14 percent in September. That follows a revised 18 percent jump in August, and the two months are the latest in a five month stretch of growth. That’s the best since the recession began.
“We’re entering this slow-growth, low-risk phase of the business cycle,” PayNet founder Bill Phelan said in an interview. “The last time, that phase lasted four to six quarters.”
What does that mean? It means that the modest economic growths we’ve seen over the last few months are resulting in more small businesses going for equipment, employees and new initiatives, which in turn means an increase in equipment financing, working capital* and other kinds of small business financing. It means that for a while, at least, that growth should continue. It’s another reason to be happy about the way things are headed.
A lot of things could go wrong between now and then, and I’m sure you’re familiar with everything from partisan bickering in Congress to the dangers of Greek default. But I like the course we’re on now, and with companies offering plenty of small business financing—yes, including Direct Capital!—there’s finally money to meet the demand of smaller companies nationwide.
Does this change your outlook on going for small business financing at all? Sound off!
*Working capital not available in the following states: AK, DE, ND, VT