The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
Half of the 1,221 business owners surveyed tried to find a loan to help their companies grow in the last six months. Bank loans were the most popular type of credit because small business owners see bank financing as the cheapest option available, according to the report.
But more than half—54%—of companies were denied credit. Most of the denials came from banks.
The reason? There appears to be incongruity in the expectations of small business owners and bank leaders. Paglia also interviewed 284 bankers for his report. He found them to be much less optimistic about the economy’s prospects than small business owners.
For example, 72% of bankers said they expect to close fewer financing deals in the next six months than they have in the recent past. The biggest reasons? Bankers worry that companies won’t be able to find access to capital (which is ironic, given that the banks are primarily responsible for lending out that capital). Banks also worry that continued economic uncertainty will make it difficult for companies to meet their growth expectations.
And increasingly, government regulation will become a major issue for small businesses, bankers worry. More pressure from regulators is the No. 1 emerging issue for small, private companies, according to the survey.
[Featured Product: Research and Compare Secured Credit Card Offers on Credit.com]
Image: Omar Bárcena, via Flickr
March 8, 2021
Personal Loans
April 8, 2020
Personal Loans