According to the Biz2Credit Small Business Lending Index, the loan approval percentage across all categories of lenders is rising. For banks and institutional lenders, the month of June has delivered new highs.
This is great news for small businesses who are looking for capital to expand their operations. However, the robust economy has resulted in the Fed increasing interest rates, with the latest one coming on June 13, making it the second hike for the year.
For small businesses looking for loans, now is a good time. Because the cost of borrowing money will get more expensive. The Fed is slated to raise the interest rates again, perhaps going as high as 2.4% by the end of 2018. And according to a report posted at Forbes by Biz2Credit CEO Rohit Arora, the rate could be 3.4% by the end of 2020.
As Arora explains, “Time is money when it comes to securing capital for your small business. The longer you wait, the more costly loans will become. Business owners who have dared well during the past two years and who are optimistic about their near-term success will want to apply now if they plan to secure financing for growth during 2018.”Biz2Credit Lending Index June 2018
When it comes to the numbers, big banks again led the way in June with a two-tenths of a per