Biz2Credit Small Business Lending Index ™ Finds Loan Approval Rates Rise at Banks, Institutional and Alternative Lenders in July 2021


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NEW YORK, August 10, 2021 (GLOBE NEWSWIRE) – Small businesses loan approval percentages To big banks (over $ 10 billion in assets) fell from 13.6% in June 2021 to 13.8% in July, the same percentage as a year ago. During this time, small banks” approvals also fell from 18.9% in June to 19.1% in July, according to the last Biz2Credit Small Business Loan Index released today. The approval percentage at small banks is up half a percent from a year ago.

“Overall, the economy has rebounded quite well and many small businesses are re-investing in their businesses,” said Rohit Arora, CEO of Biz2Credit, one of the leading national experts in small business finance. “Approval rates have increased in both large and small banks, including regional and community banks which are increasingly partnering with FinTechs to digitize the small business loan application process. . “

“The big banks are still relatively stingy when it comes to lending to small businesses. This opens up opportunities for small banks and alternative lenders to gain market share, ”Arora added.

The total number of nonfarm jobs increased by 943,000 in July and the unemployment rate fell 0.5 percentage points to 5.4%, the United States Bureau of Labor Statistics reported on Friday, August 6. . services. Many of these jobs are created by small businesses.

Increase in approval percentages of non-bank lenders

Iinstitutional lenders approved at 23.9% in July, up a tenth of a percent from 23.8% of funding requests in June and up two percentage points from a year ago. During this time, alternative lenders approved rose two tenths of a percent, from 24.5% in June to 24.7% of funding requests in July 2021. Last year, the July percentage for alternative lenders was 23.1%. VSrepeat unions approved 20.5% in July, the same percentage as the previous month, but down from 21.2% last year in July 2020.

“Non-bank lenders are a viable source of capital for small business owners, including women-owned and minority businesses,” Arora said. “Non-bank lenders generally focus less on FICO scores and more on the financial health of borrowers seeking financing.”

Biz2Credit analyzed loan applications from businesses that have been in business for more than two years with credit scores above 680. The results are based on primary data submitted by over 1,000 small business owners who have applied for financing on the Biz2Credit platform.

About Biz2Credit

Founded in 2007, Biz2Credit has arranged over $ 5 billion in small business financing. The company extends its cutting-edge technology into customized digital platform solutions for banks and other financial institutions, investors and service providers. Visit www.biz2credit.com or Twitter @ Biz2Credit, Facebook, and LinkedIn.

Media Contact: John Mooney, (908) 720-6057, [email protected]

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Source: Biz2Credit

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