Reasons Why Smaller US SMBs Aren't Applying For Loans

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Only 54% of US small- and medium-sized businesses (SMBs) with revenues of less than $100,000 say they have sufficient access to credit, according to a new LexisNexis report.

The report is based on a survey of 305 owners and authorized agents of SMBs who’ve applied for funding in the past three years or intend to do so in the next three years. Despite the significant shortage in credit, owners of these smaller SMBs are also significantly less likely to apply for loans than other SMBs: Only 24% of SMBs with revenues below $100,000 applied for a loan in the past three years, compared with 53% of SMBs with revenues of over half a million.

Here’s why these SMBs have been holding off on loan applications in the past three years:

The majority (66%) of smaller SMBs that haven’t applied for loans think they won’t be approved. While there’s likely a variety of reasons why these businesses think they’ll be rejected, such as previous experiences, …read more

Source:: Businessinsider – Finance


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