econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 19 April 2017

Infographic Of The Day: Small Business Credit Survey

The Federal Reserve Small Business Credit Survey is a collaboration among all 12 Fed Banks. The survey reports information about the business performance, financing needs and choices, and borrowing experiences of businesses with fewer than 500 employees. In 2016, the survey yielded 15,991 responses - 10,303 responses from employer firms.

Performance and Expectations

  • Similar to the 2015 survey, about half of the firms were profitable and had growing revenues. Most firms were also optimistic about the coming year, with a net 61% expecting revenues to grow and 39% anticipating job growth.
  • Changes in debt levels and expectations about future debt were modest. 34% saw their debt levels increase in 2016 and only 19% expect to increase their debt levels in 2017.

Financial Challenges and Reliance on Personal Finances

  • Despite their optimism, 61% of firms faced financial challenges in the last year. The top challenges were accessing necessary credit (44%) and meeting operating expenses (36%).
  • The vast majority of firms addressed financial challenges by using personal finances (76%) before taking on additional debt (44%). Most also relied on the owners' personal credit scores to obtain financing (87%).

Financing Demand, Approvals and Sources

  • Similar to the results of the 2015 survey, 45% of firms applied for financing.
  • Most loan applications were very small, with 55% of firms applying for $100,000 or less in financing and 74% applying for $250,000 or less in financing.
  • Applicants were more likely than non-applicants to be growing (34% versus 25%) but were more likely to have experienced recent financial challenges (76% versus 48%).
  • Banks were the most common source of credit for firms, with 50% applying to large banks and 46% applying to small banks.
  • Loans or lines of credit were the most frequently sought lending products (86%). Loan applicants had greater success at community development financial institutions, small banks and online lenders than at large banks.

Smaller Firms

  • "Smaller" employer small businesses (with $1,000,000 or less in revenue) make up 70% of survey respondents, and their challenges and reliance on personal finances are far more pronounced than those of "larger" employer small businesses (with more than $1,000,000 in revenue). These challenges are particularly salient for the U.S. macroeconomy, since new employer small businesses, which are typically "smaller" in their early stages, are the primary source of U.S. job growth.
  • Smaller firms were:
  • More likely to face financial challenges (67%) than larger firms (47%).
  • More dependent on personal finances (25% relied on personal finances and 48% relied exclusively on a personal credit score) compared to larger firms (11% and 25%, respectively).
  • More likely to face financing shortfalls, with 67% of applicants reporting a gap compared to 45% of larger firms.
  • Notably less successful at obtaining financing at large banks (45% success) than larger firms were (72% success).

[click here to enlarge infographic]

Source: https://www.frbatlanta.org/research/small-business/survey/2016/report-on-employer-firms?panel=1

Click here for Historical Infographic Post Listing



>>>>> Scroll down to view and make comments <<<<<<










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Infographics


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
Angst in America, Part 5: The Crisis We Can’t Muddle Through
Was Marx Right?
News Blog
Early Headlines: Asia Stocks Down, Dollar, Oil, And Gold All Up, Trump Will Pay ACA $, State Dept To Cut 9%, Trump Tax Plan, UK House Prices Drop, France GDP Growth Slows, And More
What Americans Shop For With Coupons Online
Fact Check: Are A Million African Migrants Already On Their Way To Europe?
Doctor Google Will See You Now
What We Read Today 27 April 2017
March 2017 Philly Fed Coincident Index Ticks Marginally Up
What Is 5G
April 2017 Kansas City Fed Manufacturing Remains Positive But Declines
March 2017 Pending Home Sales Seasonally Adjusted Index Declines
Durable Goods New Orders Improved in March 2017
22 April 2017 Initial Unemployment Claims Rolling Average Marginally Improves
Infographic Of The Day: These Are The Countries Most and Least Prepared For Cyber Attacks
Documentary Of The Week: History Of The World From The Beginning Of 'Time'
Investing Blog
Think Differently For Better Trading Results
Facebook Is Coming After Snapchat From All Sides
Opinion Blog
Trump's Tax Plan Is Brilliant Politics And Even Better Economics
Facts Are Not Always More Important Than Opinions: Here's Why
Precious Metals Blog
A New Age For Gold
Live Markets
27Apr2017 Market Close: Wall Street Closes In The Green With Nasdaq Grabbing The 'Golden Ring' Crossing 6,000, WTI Crude Climbs Back Into The 49 Handle, US Dollar Slips Off Session Highs
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government































 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved