Small to Medium Size Businesses Stabilizing

A recent report released by Bill Phelen’s Skokie Illinois-based PayNet which provides risk management to commercial lenders, stated that default rates amongst small to medium size businesses is down in October for the third straight month.

American businesses are now stabilizing and are able to repay their loans to banks verifying that businesses hit bottom sometime earlier this year. However, PayNet’s Small Business Lending Index also reported a decline of 18% in financing for businesses in October. Due to hesitant consumers, businesses are not confident in expanding currently, and many businesses aren’t investing in expansion options.
The question still remains, if these small to medium size businesses wanted to expand, where would they receive the funding from considering recent reports show that banks are continuing to tighten credit lines. Merchants will eventually need the extra cash, and they will have to find the funding through non-traditional lending like merchant cash advances or other small business loans.

To view the original Reuter’s article at FOX News please click here!