Small businesses appear to be improving their financial positions in the market. The latest figures from the Biz2Credit small business lending index suggest that big bank lending to SMEs is on the rise, and small businesses are not seeking out loans as desperately as they once were.
And a new report released on Wednesday (July 22) suggests that SMEs are feeling good about their economic outlook. SME lender Balboa Capital released the findings from its midyear survey and found that 65 percent of small businesses are optimistic about the future of the economy for the second half of the year.
“This speaks to the improvements in revenue and cash flow that small businesses experienced throughout the first six months of 2015,” said Balboa Capital Director of Marketing Jake Dacillo.
Nearly half of small business owners also agreed that the economy will end 2015 with higher growth. With such optimistic views about the near future of the economy, small businesses are acting accordingly.
Approximately one-third of respondents said they want to expand their business, while 20 percent said they want to procure new equipment or technology. According to Dacillo, “this is consistent with recently published economic and employment numbers as they relate to small businesses.”
Interestingly, the research found that small business loans were not the most common type of financing sought by SME owners in the first half of 2015. Instead, those that needed financing sought out credit lines and equipment leasing, with small business loans coming in third place.
Balboa Capital’s findings are a stark contrast from separate research published earlier this month, in which the National Federation of Independent Business’ Small Business Optimism Index found that levels of optimism among small business owners dropped in June, compared to months prior.