Small Businesses Saw Increase In Lending In November
Written by Ken Gaebler
Thompson Rueters/PayNet Small Business Lending Index reveals 19 percent increase in borrowing
According to the latest Thompson Rueters/PayNet Small Business Lending Index, small businesses were able to borrow more in November than the previous month.
The 19 percent increase in financing represented the third straight month that the index had increased by double digits, allowing small businesses to purchase new business assets. The president and founder of PayNet, William Phelan, said that the increase was good news for entrepreneurs and would most likely lead to an increase in hiring.
"As property, plant and equipment gets added, you need people to run these things," Phelan said in an interview. "This is a show of strength."
Other statistics from the index showed that fewer companies were delinquent on their loans. The PayNet data showed that moderate delinquencies fell from 2.69 percent in September to 2.65 percent in October.
There was other positive news for small businesses, according to another leading index. The Intuit Small Business Employment Index showed that small business employment rose by 0.24 percent in November, or approximately 49,000 new hires.
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