Another report on the credit conditions facing small business owners is in, and the news is mixed. The National Federation of Independent Business believes there were both fewer unmet credit requests in 2010 versus 2009, and an increase in the number of discouraged borrowers who had given up trying.
Let’s just jump straight into the stats so you can see some conclusive numbers for yourself. The NFIB said in a statement, "Forty-one (41) percent of small employers who formally attempted to obtain credit in 2010 got all they wanted. Nineteen (19) percent got ‘most,’ 18 percent got ‘some,’ and 16 percent were shut-out."
The NFIB also observed, "In 2010, the percentage of small employers applying for credit fell from 55 percent (in 2009) to 48 percent (in 2010). However, the percentage approved for credit rose somewhat, leaving about the same number accessing credit in 2010 as accessed it in 2009."
Then here’s one other encouraging (and potentially helpful) observation: credit cards proved to be the easiest form of credit for small business owners to obtain. So consider giving them a shot before wasting time with a loan officer or six.
Hopefully most of these stats will continue to improve throughout the year; the Dow’s already passed above 12,000, at least, perhaps signaling that the economy is getting healthier.
