Stop blaming the banks for not lending enough to small businesses.
According to the latest SurePayroll Small Business Scorecard for August 2012, 82-percent of small business owners did not even seek lending so far this year. And of those that did, only 32-percent had difficulty convincing the banks to hand over the money.
“For a long time, the banks have taken a beating for not lending enough to small businesses, but this data suggests the banks may not be the problem,” says SurePayroll CEO and President Michael Alter. “There’s simply not enough demand in the economy. Many small businesses don’t have a reason to spend. Those businesses that do aren’t having a problem getting loans.”
Other indicators aren’t looking very flash, either. Optimism amongst small business owners is down from 62-percent last month to 60-percent (it was 70-percent earlier this March). Month-over-month, hiring is down 0.1 percent and the average paycheck is down 0.2 percent. Nationwide, year-over-year, hiring is down 1.5 percent and paychecks are down 1.4 percent.
For more, check out the following infographic: