More business owners are expecting credit availability to improve, but according to a recent survey, they may not be completely aware of options on the market right now.
Ahead of themselves
A Gallup Small Business Index poll earlier this month found that one-fourth of all businesses feel business loans and other forms of credit will be more lenient by the end of the year, a 4 percent increase from the same period in 2011. The same proportion reported that credit was already somewhat or very easy to obtain in their estimation. While the standings are far from pre-recession figures, there is consistent upward movement in owner sentiment over the last year.
For the three-fourths that aren't enjoying the same success with business loan applications, an online marketplace like Boefly can get you in touch with a variety of interested lenders quickly to increase the likelihood of an approval.
Reason for the lag
The Bank of America Small Business Owner Report (SBOR) found that small business loans may be harder for owners to obtain due to lack of knowledge regarding the individual's use of existing programs or money management. Last year the Small Business Administration got 13 leading banks to pledge additional efforts to increase small business lending, yet The Chicago Tribune reported that SBA loan amounts were still down as of last month.
SBOR results indicated that while more than three-fourths of respondents had been approved for small business loans in the last year, more than half were saving that money for emergencies instead of putting it to immediate use. Allowing money to languish won't help business growth, and as Bank of America's Robb Hilson pointed out in the SBOR release, owners should be pursuing professional financial advice to improve cash flow, learn about available tools and put their money to work.