The success of the SMB sector is often a major indicator of overall economic health in the United States. Small business lending has been on a long and winding road to recovery since the last economic recession, but a new report suggests that increases in May might have pushed the nation back from a consistent drop off throughout the four months prior.
The Associated Press reports that the latest iteration of the Thomson Reuters/PayNet Small Business Lending Index showed a month-to-month increase of 12 percent in May, a more than ten-point hike on the index. Figures in the April index revealed a score of 96.6, while May raked in 108.4, a number the source notes as being the highest since the 110.5 logged in December.
"We expect to see steady and cautious expansion by small businesses if we avoid external shocks such as another credit crisis," PayNet's president, William Phelan, told the source.
The index's signs of explosive gains in small business lending prove that now might be a great time to begin searching for financing. For the most efficient application process that will yield substantial success, borrowers should consider enlisting the help of a trusted company like Boefly.
Reuters explained that this increase was enough to all but negate the slide from January to April, as year-over-year growth in May increased 18 percent. The source noted this further eclipsed the 2011 average of 17 percent growth per month.
Even more good news came in the form of substantially decreased delinquency rates in the sector. Reuters notes that PayNet's data showed a 1.18 percent drop in late payments of 30 days or more, falling to the lowest rate since the inception of the study in 2005.
All other overdue payment rates also dropped, showing a marked improvement of financial stability among current small businesses.