Big banks and institutional lenders continue giving small businesses a reason to smile.
According to the newly released Biz2Credit Small Business Lending Index report for November 2016, loan approval rates at both big banks and institutional lenders continued to rise, improving to new highs.
What’s more, small banks also showed an increase in small business loan approval rates.
The only drop in approval rates came from alternative lenders and credit unions.
Biz2Credit Lending Index November 2016
The report reveals loan approval rates at big banks improved to 23.7 percent, up two-tenths of a percent from October. Notably, it marked the eighth time in the last nine months that lending approval rates went up at the big banks.
Small banks reported an improvement of 48.8 percent, up one-tenth of a percent from October.
“Banks have invested in technology the last year is paying its dividends. Advances in analytics enable them to approve a higher percentage of loans while lowering loan default rates,” said Rohit Arora, CEO and co-founder of Biz2Credit, who oversaw the research.
Meanwhile, loan approval rates at institutional lenders also continued to improve. In November, it climbed to a new index high of 63.3 percent.
“Institutional lenders have been a big story in marketplace lending in 2016. They are here to stay,” Arora remarked.
New Presidency May Work in Favor of Small Businesses
Arora said Donald Trump’s victory will have a positive impact on the lending markets.
Significantly, the President-elect has pledged to repeal Dodd-Frank, which brought a number of regulations to the banking sector since it was signed into law.
Biz2Credit is an online lending platform that connects business borrowers and lenders. Their monthly lending Index is a representation of more than 1,000 small business loan applications on their platform.
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In regards to loan approval rates at credit unions, Biz2Credit revealed that those dropped in October to yet another Index low of 41.2%.
It’s good to know about this trend. Not only businesses need loans but also families who may need emergency money for bails. Hopefully the new president elect can help all US citizens to get jobs. Thanks for this website to connect businesses and loan companies and provide necessary capital for their needs.