NEW YORK, September 14, 2021 (GLOBE NEWSWIRE) – Small businesses loan approval percentages To big banks (over $ 10 billion in assets) fell from 13.8% in July 2021 to 13.9% in August, up three tenths of a percentage from a year ago. During this time, small banks” approvals also fell from 19.1% in July to 19.3% in August, according to the last Biz2Credit Index of Small Business Loansâ„¢ released today. The approval percentage at smaller banks is up eight-tenths of a percent from last year.
“Small businesses are borrowing again to improve their cash flow and for growth,” said Rohit Arora, CEO of Biz2Credit, one of the nation’s leading experts in small business finance. “Approval percentages have increased in both large and small banks. “
The total number of nonfarm jobs increased by 235,000 in August and the unemployment rate fell 0.2 percentage point to 5.2%, the Bureau of Labor Statistics reported on Friday, September 3. services, transportation and warehousing, private education and manufacturing. Many of these jobs are created by small businesses.
Increase in approval percentages of non-bank lenders
Iinstitutional lenders approved at 24.3% in August, up from 23.9% of funding requests in July and 2.2 percentage points from a year ago. During this time, alternative lenders approved rose nearly one percent, from 24.7 percent in July to 25.2% of funding requests in August 2021. Last year, the August percentage for alternative lenders was 23.0%. VSrepeat unions approved 20.5% in August, the same percentage as the previous two months, but down from 21.1% in August 2020.
“Non-bank lenders continue to be a good source of capital for small business owners,†Arora said. “They generally focus less on FICO scores and more on the financial health of borrowers applying for financing. This is especially true for institutional lenders and alternative lenders.
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 $ 7 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]
