Though recent reports saw small business lending up towards the end of 2012, experts are cautiously optimistic for lending in 2013.
According to the most recent data from the Reuters/PayNet Small Business Lending Index (SBLI), the overall volume of financing to small businesses increased to 108.3 in November, up from September’s 14-month low of 94.1. But Bill Phelan, president and co-founder of PayNet, says that while the gains are a step in the right direction, overall 2012 small business growth was still “tepid” compared to 2010 and 2011.
“I think we’re slowly emerging into a more credit-friendly environment,” said Mike Rozman, the co-president and chief strategy officer of BoeFly. “We’re seeing growth, but it’s fairly slow growth‚ not anything dramatic.”
He says that the slow increase has coincided with an overall improvement in credit quality, which could mean good things for small business borrowers in 2013.
“Lenders are now more willing to step forward and do new deals when, in the worst of the credit crisis, they were hunkered down and unwilling to do the originations,” he added.
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