Small Business Lending Demand Remains Strong in March
Small business lending demand hit its highest level of 2013 in March, according to the Monthly Small Business Lending Index released by Direct Capital, a leading provider of equipment leasing, business loans and working capital.
The index showed that small business lending demand across the United States in March was up 4.5% over February. Year-over-year demand increased as well. The index found that demand in March 2013 was up by 36% over March 2012. That continues a trend of increased demand over 2012 previously observed in both February and January.
The news shows that despite a mix of positive and negative economic news, small businesses are targeting growth in 2013 and seeking capital to do so. The most recent National Federation of Independent Business survey found that business confidence increased to 90.8% for last month, a modest but appreciable increase from the beginning of the year.
“March has more business days than February, so we don’t want to overplay the increased demand that our data models are showing,” said Stephen Lankler, senior vice president at Direct Capital. “But, the Index continues to report that small business lending demand is up considerably over 2012. And that’s exactly what we are seeing within our business. So, we are still very bullish on the small business economy despite conflicting reports from the media.”
Direct Capital’s Monthly Small Business Index is based on an algorithm that collects data from more than 200 sources.