SMALL BUSINESSES CONTINUE TO FEEL CREDIT SQUEEZE

Posted by Joachim Bartels | Dec 26, 2010 | BIIA News, Experian, United States | 0 |

A new study recently released by Experian noted that despite upticks in many economic indicators, small businesses are still facing an especially tightened credit market and a major decline in overall lending. The annual benchmark report showed that financial institutions have maintained their hesitant attitude toward small business lending, with overall loan volume to the sector dropping 10% over the past year.

Small businesses have continued to rigorously seek out credit and have increasingly begun relying on credit cards, with credit card volume increasing by 22% over the same period. As small businesses have migrated to credit cards for their cash flow needs, applications to financial institutions for financing have also dropped over the last year.

Source: NACM; courtesy Jacob Barron, NACM staff writer

BIIA Newsletter January 2010 Issue

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Joachim Bartels

Joachim C Bartels is a co-founder, director, head of information resources and Editor-in-Chief of BIIA. In his capacity as Editor-in-Chief he is responsible for the selection of relevant information content concerning industry insights, trends, technological developments, standards and policies impacting BIIA members in particular and the business information industry in general.

The BIIA library is approaching 10,000 news items and best demonstrated practices. BIIA members receive regular news alerts on key developments in the industry and the regulatory environment. The BIIA readership is widespread: between 4 to 5 thousand unique visitors access BIIA.com per month.