Younger NY Firms Rely More On Business Earnings For Financing
Written by Ken Gaebler
Sixty-three percent of NY small businesses count at least one credit product among their financial support.
Amid small business news that is reporting both improving and decreasing lending, confidence and sales, the Federal Reserve Bank of New York has released a new report complementing its October lending survey.
The report found that 68 percent of respondents have at least one credit product as one of their top three sources of financing, with an additional 63 percent citing business earnings as its most important type of financing.
However, there was some disparity among credit product usage, especially between different age groups. The report noted that younger firms rely much more heavily on business earnings or alternative loans from friends or family than their older counterparts.
Furthermore, the New York Fed is planning to conduct additional polls to gauge the dynamics of the small business sector and how it relates to these entities' growth. It will also feature special topics that have yet to be determined.
"Small businesses play a critical role in creating new jobs and are of vital importance to the economic recovery. The Bank's research on small businesses’ use of and access to credit is intended to inform a variety of community stakeholders," said Kausar Hamdani, senior vice president and community affairs officer at the New York Fed.
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