San Francisco, CA (PRWEB) December 19, 2012
The recent Experian/Moodys Analytics Small Business Credit Index shows a continuing weak loan market, combined with deteriorating small business credit quality.
Terry Robinson, President of Sunovis Financial, says one reason for a weak loan market is that many small business lenders have simply given up on bank loans after being rejected numerous times – even if the business is healthy. “I hear over and over again from our clients that they had simply given up on finding bank credit.”
This is one reason why Sunovis offers the quick Short-Term Micro Loans for small businesses, which does not put emphasis on FICO scores and does not require collateral. Repayment is reported to the credit agencies so a small business can build or rebuild credit scores.
The Micro loans are from $ 5,000 up to $ 150,000 for short periods; there are some disqualified industries.
The Experian/Moody’s Index on small business credit fell from an adjusted level of 105.7 in the second quarter to 104.1 in the third quarter. “Appreciable improvements in small business credit quality are unlikely until mid-to late 2013,” according to the report.
Loan volume is down due to the tight lending standards at banks, and small bank troubles. Further troubles in the proposed Basel III hurts small banks does not help. Businesses are making do with cash on hand and reducing both capital expenses and staffing levels. Since small business is the engine of growth, this bodes poorly for not only small businesses but the U.S. economy as well.
Adding to the woes is uncertainty among small business owners. Until there is a resolution to the fiscal cliff, increased taxes and a reduction in the deficit, this uncertainty will continue to impact credit quality.
About Sunovis Financial
Every small business is important to local communities and even more important in rebuilding the American economy. Today more than ever, small businesses need capital and assistance to thrive, and that is what Sunovis is focused on, including SBA loans and Short-Term Micro Loans for businesses.