The Near-Future Looks Bright For Small Business Financing
Experian/Moody's Small Business Credit Index shows that the small business financing situation is looking better and better.
One of the best indicators for future small business success is access to capital. When a business has good credit, good collateral, and a good business plan, it’s a lot easier for them to be successful in the future, because they can borrow to expand their business.
The Experian/Moody’s Analytics Small Business Credit Index is a measure of the nation’s small business sector’s credit worthiness, It’s released quarterly, and it is a great way to look at the near-future of the small business sector.
On November 12, Experian and Moody’s released their Q3 SBCI report. This quarter’s report showed a 2 point gain on the previous quarters, showing a strong uptick in health for the nation’s small businesses. This is the second time that the index has improved in a row, showing a positive trend leading into Q4.
With that being said, there’s still some areas that show need for concern.
Joel Pruis, the Senior Business Consultant at Experian, said the Northeast sector is a bit worrying because of the big recession in Europe. “In 2009, as we were coming out of the recession, we saw that the Northeast was connected more to the European economy, because of the exports heading to Europe. We can see that same correlation happening this time.”
Even with the Northeast’s manufacturing industry’s potential troubles, I’m optimistic about the upcoming year for small business financing. Outside the index, there’s a lot of support for local business, like Small Business Saturday, and a growing number of startups.
What’s your thoughts? Are you optimistic about the future of small business?