Biz2Credit recently announced the results of its latest small business lending index, which revealed that small business loan approval rates for big banks reached another high point in July 2018. The index notably examines more than 1,000 credit applications made by small businesses through Biz2Credit’s online lending platform.
According to the index, the month’s approval percentage for big banks (which are assets of more than $10 billion) rose two-tenths of a percent from June’s figure of 26.1% to 26.3%. Business loan approval rates also rose at regional and community banks and small banks granted 49.7% of the funding requests they received in July, up one-tenth from June and loan approval rates among alternative lenders remained at 56.5 %, the same as the month prior. Credit unions approved 40.3% of loan applications in July, which is the same as in June 2018.
Speaking about the index’s monthly result, Biz2Credit CEO, Rohit Arora, stated:
“The Fed rated the economy as strong this month, and the Jobs Report found that the economy keeps adding jobs in many sectors. In addition, there is optimism among small business owners. All of these factors create an atmosphere that is ripe for small business lending. Business owners continue to invest in their firms and are finding success in securing capital, according to our latest figures.”
Arora also noted July 2018 was a strong month for small business lending approvals across all categories of lenders and added:
“There will always be a demand for funding from non-bank lenders. They are willing to lend money to small businesses that do not qualify for traditional bank loans. Alternative lenders are a source of quick capital, but borrowers do pay high interest rates for the money.”