Small Business Lending Hits a 7-Year High As Companies Invest in a ...

Category: Small Business Borrowing Published: Tuesday, 14 October 2014 Written by Admin

Small business owners see higher demand for goods and services and are gearing up for it with robust investment, which typically leads to higher employment numbers, too.

Overland Park, KS, United States - September 12, 2014 /MarketersMedia/ --

As reported by Reuters this month, small business borrowing in July increased significantly, which pushed the closely watched Thomson Reuters/PayNet Small Business Lending Index to a positive level not seen in more than seven years.

According to the newest data released on September 3rd, lending to small businesses tracked through the index is now higher than it has been since the spring of 2007. That has special historical significance because that was when the economy was booming, just before the onslaught of the credit crisis and Great Recession. Not only that, but these new numbers represent the third-highest figures since the index launched almost a decade ago.

The encouraging news confirms the expectations of Meghan Robinson, CEO of Sunovis Financial, whose lending company had already noticed a healthy uptick in borrowing by small businesses.

"Banks have relaxed some of their lending requirements," Robinson explains, "and private lenders are also funding more loans, particularly for small business owners. I expect that we will see this borrowing trend continue through the end of the year and beyond as businesses position themselves for a great year in 2015. When entrepreneurs thrive, and small businesses grow it also translates into job creation. All of this is great news, of course, and it reaffirms the fact that small businesses play a critical and dynamic role in the overall economy."

Many retailers are buying more inventory in anticipation of the holiday season, which is a good sign, but the borrowing activity noted in the index does not appear to be merely based on seasonal factors. Similarly, small businesses appear to be investing in ways that are not just related to routine maintenance. Instead, experts like Robinson believe that they are borrowing above and beyond their basic needs in order to fund expansion and keep up with increased customer demand.

The Thomson Reuters/PayNet Small Business Lending Index correlates with growth of America's gross domestic product and is designed to predict growth two to five months ahead. Because there is also a significant relationship between small business loan growth and job creation, the data indicates that the US economy will give Americans plenty of reasons to celebrate as the traditional holiday season approaches.

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Contact Info:
Name: Meghan Robinson
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Address: 7500 College Blvd.
Phone: 855 243-7191
Organization: Sunovis Financial, Inc.

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