Things took a turn for the better for U.S. small businesses during the second quarter of 2014. According to Small Business Credit Index released recent by Experian and Moody’s Analytics, small business lending showed some improved growth in the spring and early summer of 2014.
In line with expectations, small-business credit conditions improved in the second quarter,” notes the report’s authors. “The index measures credit quality for firms with fewer than 100 workers, and last quarter’s move puts it at an all-time high.
The report noted that credit balances grew 4.8 percent annualized and the commercial risk score (as measured by Experien) was 61.4 for Q2, up 5.8 percent year-over-year. Moreover, the delinquency rate fell from 9.7 percent in Q1 to 9.3 percent in Q2 (The lowest rate since Q3 last year) Experian data also showed bankruptcies improved by nearly 12 pecent year-over-year and that SMBs reduced the number of days they paid their bills beyond contracted terms by 4.5 percent.
“It appears that small businesses are faring better than they have in years,” cites the report authors. Furthermore, “The improvement in credit quality was broad-based last quarter.”
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More