New research from the National Federation of Independent Business revealed small-business owners are becoming more able to obtain the business financing they require. Only 4 percent of small-business owners surveyed said their credit needs were not met, w
One of the reasons this is the case is that small businesses can demonstrate to loan officers that they have had several years of growing profits and cash flow as the recession ended in June 2009, according to Biz2Credit CEO Rohit Arora.
Banks are beginning to ease their credit requirements for small businesses, according to USA Today, as the economy continues to recover. In October, the Federal Reserve surveyed large banks and found nearly 12 percent of them had more forgiving credit standards for small firms compared to three months before, and none said they had tightened their standards. Of course, the situation is different with smaller lenders, but the Federal Reserve data did not encompass them.
NFIB notes lending has not yet returned to pre-recession levels, though it continues to improve over time. Small-business owners seeking financing may have an easier time of it now than even a few months ago. It's important to remember a relationship with a lending institution has many more elements than whether it will approve a loan. In the best cases, small business can obtain tailored solutions that will fit the way they operate, and can build a relationship with a loan officer that will be beneficial in the long run.