Business Credit

Interesting credit survey results from small business

Taken from NFIB which is National Federation of Independent Business (and I am a member). These survey results are interesting in respect to borrowing, need to borrow and other credit issues.

Overall, 91 percent of small business owners reported that all their credit needs were met or that they were not interested in borrowing. Nine percent reported credit needs not satisfied, and a record 53 percent said they did not want a loan. Only 3 percent reported financing as their number one business problem. However, 30 percent of the owners reported weak sales as their top business problem, followed by 23 percent citing taxes and 16 percent government regulations.

A near record low 33 percent of all owners reported borrowing on a regular basis. Reported and planned capital spending are at 35-year record low levels, so fewer loans are needed. The net percent of owners expecting credit conditions to ease in the coming months was seasonally adjusted negative 14 percent. The Fed is holding rates at historically low levels, but this is not improving the outlook for the ease of financing expansion.

"Members of Congress fled with no action on important issues such as extending current tax rates, leaving the cloud of uncertainty larger and darker," said NFIB Chief Economist Bill Dunkelberg.

Owners won't make spending commitments when sales prospects remain weak and decisions such as tax rates and labor costs remain so uncertain.


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