Big banks and institutional lenders continue to increase the percentage of small business funding requests that they receive. In fact, both categories of lenders reached post-recession highs in January 2015, according to my company’s Biz2Credit Small Business Lending Index, the monthly analysis of 1,000 loan applications on Biz2Credit.com.
Big banks ($10 billion+ in assets) approved 21.3% of small business loan requests in January 2015, up from 21.1% in December 2014. They are willing and able to make large loans and still have an interest rate advantage over most of their competitors. Typically, the bigger banks grant loans in excess of $2 million.
Meanwhile, institutional lenders (family funds, hedge funds, and other non-bank institutions) granted 60.5% of funding requests by small business owners in January, an increase from 60.1% in December. Approval rates by institutional lenders have increased each month since Biz2Credit began monitoring this category of lenders one year ago.
– Need a Small Business Loan? Big Banks, Institutional Lenders Are Approving Requests at Post-recession Highs (INC.)
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