Small business loan approval rates at big banks (
"In April, small business owners submit their tax filings, and banks use that data in making their lending decisions," explained Biz2Credit CEO
"There was a lot of pent up demand in the marketplace. Retailers are buying inventory, and restaurants are upgrading their outdoor seating in preparation for the summer," Arora added. "Big banks make speedier decisions on non-SBA loans, which take a long time to process. That is a major reason for the jump in approval rates by big banks."
Small business loan approval rates at small banks decreased to 51.1% in
"Small banks are down because they are not processing SBA Express loans as quickly as they were last month," said Arora, who oversaw the research. "I was a little surprised to see them stall a bit in April."
Meanwhile, loan approvals by credit unions dropped to the lowest level ever in the three year history of the Biz2Credit Index. Small business loan approval rates at credit unions slightly decreased from 43.6% in March to 43.5% in April.
"Overall, credit unions keep slipping in the small business lending marketplace," added Arora.
Small business lending approval rates at alternative lenders dropped for the fourth consecutive month to 63.5% in April from 63.6% in
Institutional lenders granted 58.3% of the funding requests they received in April, an increase from 58.1% in March. These institutions include credit funds, insurance companies, family funds, and other yield-hungry, non-bank financial institutions. They typically offer more competitively priced loan options than alternative lenders in amounts up to
"Institutional investors are taking away market share from alternative lenders," Arora said. "They are gathering momentum as a category of small business lender as company owners to borrow larger sums of money at cheaper interest rates."
To view the historic chart of the Biz2Credit Small Business Lending Index, visit https://www.biz2credit.com/small-business-lending-index/april-2014.html.
About the Biz2Credit Small Business Lending Index
Biz2Credit analyzed loan requests ranging from
Founded in 2007, Biz2Credit has arranged more than
Read the full story at http://www.prweb.com/releases/smallbusiness/lending/prweb11824799.htm
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