Small business expectations to apply for additional credit surpassed
the middle market.
The percentage of small businesses and middle market companies that
intended to divest ownership in the next five years decreased.
If small businesses were to switch primary banks, business checking
account features and fees would be the most important product offering
and having a conveniently located branch would be the most important
Barlow Research finds increased business confidence among small
businesses ($100K-<$10MM) in the second quarter of 2014. Small business
optimism appears to be growing faster than the middle market, which had
been the market leaders. Barlow Research’s Second Quarter 2014 Economic
Pulse Survey explores business confidence, credit appetite and the
importance of various products, services and channels when selecting a
new financial institution.
Expectations for the overall condition of business, condition of
industry, sales and profits have improved. However, middle market
expectations in these metrics saw slight decreases. Furthermore, both
small business and middle market companies expect to increase their
investments in capital expenditures over the next 12 months.
“Even as middle market companies become more tentative and appear ready
to relinquish their position as economy drivers, bankers need to be
ready to capitalize on opportunities from increased small business
confidence,” says Joel Mueller, Research Analyst, Barlow Research.
Demand for additional credit increased from the previous quarter among
both small businesses and middle market companies. The percentage of
small businesses that were approved of all/partial credit increased
while denials/expected denials decreased.
“Small business firms are warming to the idea of adding additional
credit over the next 12 months but have yet to commit to a major credit
increase,” says Bernie Kuechler, Director of Data Analytics, Barlow
Other important results from the second quarter 2014 Economic Pulse
About Barlow Research Associates, Inc.:
Barlow Research Associates, Inc., founded in 1980, provides research and
consulting services to the banking industry in the U.S. and overseas
with specialties in custom research, strategic consulting and syndicated
research programs for small business, middle market and business
For more information on the study, contact Bernie Kuechler, Director of
Data Analytics at email@example.com
Bernie Kuechler, Director of Data Analytics,
Source: Barlow Research