As if small firms haven’t had enough to deal with this year, now there’s something else: traditional bank loans are drying up.
That’s according to the latest monthly report from financing firm Biz2Credit. The company’s small business lending index, which analyzes the more than 1,000 loan requests each month from small business owners on its lending platform, found that the number of requests approved by banks have been significantly dropping.
According to their data, loan approval percentages from big banks ($10bn+ in assets) were at 13.3% of applications submitted in November 2020. That’s down from a 28.1% approval rate recorded in November 2019.