Tuesday, April 28, 2015

Home News Lending to small business is slowing

Lending to small business is slowing

Industry News

The dip is a sign that companies are losing confidence in the economy.

Washington Post | May 1, 2012

The Thomson Reuters/PayNet Small Business Lending Index was at 98.5 in March, down from a revised 101.8 in February. The index had reached 110.5 in December, when companies were rushing to acquire equipment before the expiration of tax deductions at the end of 2011. PayNet’s analysis shows that lending is up 10 percent from a year ago, but it’s also down to the level where it was in 2005.

The drop in the index is in line with other economic reports that have pointed to a slowing of the economy. On Friday, the government said the economy as measured by the gross domestic product grew at an annual rate of 2.2 percent in the first quarter, down from 3 percent in the final three months of 2011. On Monday, the Commerce Department reported that consumer spending rose in March, but at a slower rate than in February.

Many companies have been hesitant to borrow since the recession because they have been uncertain about the economy. They want to be sure that the economy and their sales are growing solidly before they take on debt. The recent reports are likely to make them even more cautious.

PayNet forecast that “uncertainty may be the prevailing condition until the results of the November election.”

For the rest of story, click here.
 

Top news

Right place, right time

Know your plants' needs before you start to cut.

Cut, chop or saw?

Choose the right tools for your clients' trees and shrubs.

Profit or loss

Figure out your gross margin and you’ll find out if you’re making money or just buying work.

Generate more business through consumer financing

L&L will host a free webinar to help you understand how to be more budget-friendly for customers.

Hope with slopes

Even on a steep incline, you can provide effective erosion control.

x