Consumer confidence up, need for credit remains

Jessica SarterSmall Business Lending

As 2012 comes to a close and the busy holiday shopping season gets going, small businesses have an opportunity to maximize this year’s revenues in the coming weeks. While small business lending has experienced ups and downs over the past several quarters, consumer confidence and spending have been on a gradual, but consistent upward path.

After August and September logged back-to-back increases in consumer spending, bringing some figures to the highest levels since the recession, October did drop back a bit. However, many analysts believe this was largely caused by the devastation following Hurricane Sandy, and that November’s revenues will bounce back.

Two reports illustrate consumer confidence, comfort
Businessweek recently reported that the latest Bloomberg Consumer Comfort Index reached minus 33.1 in the week ending November 11, a more than 1 point increase from the week prior. According to the news provider, this is the strongest logging in more than six months, and bodes well for small businesses going into the busy holiday shopping season.

Further, this was the tenth increase in the last twelve months, and analysts expect better overall economic conditions will continue in the new year. Businessweek added that manufacturing saw gains last month, as did the buying climate. As consumer spending makes up more than half of the total U.S. economy, this will likely impact many small businesses for the better.

Deloitte recently released the results of its Consumer Spending Index, revealing that October’s numbers were a strong indication of future increases in transactions. The firm explained that this increase in consumer spending should be just what most businesses need going into the final stretch of 2012.

Credit crunch may loosen
Small business owners often list access to credit as the most important component of healthy operations. Several reports revealed that lending contracted in October, while others believe that this might have been caused by less demand rather than a decrease in accessible funding.

To ensure the most successful holiday shopping season, which will peak for many entrepreneurs on Small Business Saturday, which falls on November 24, owners and managers will need to optimize their operations.

Small business owners in need of commercial loans can experience a more successful and efficient application process by using BoeFly. This firm has thousands of participating lenders and only requires one loan application to be matched with the best-suited financial institutions and more.