Small Business Finance News

Small Business Payment Behaviors May Be Improving

Written by Jenna Weiner
Published: 1/15/2010

Small business payment behavior is stabilizing, according to a report from Cortera.

The December 2009 Small Business Index Report from Cortera reveals that small businesses might be closing the wide gap between big and small business payments - which could be good news for entrepreneurs looking for access to credit.

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The Small Business Index report reveals that small business payments to their vendors, suppliers and other business partners stabilized at the very end of the year. Experts at Cortera predict that SMB payment behavior will remain less volatile in the coming months.

"The big questions now are whether the system has sufficiently cleansed itself of the drag caused by the most delinquent players, how much risk remains, and whether current levels represent a kind of new normal," said Jim Swift, president and CEO of Cortera.

The report serves to benefit small businesses nationwide as payment behavior is the primary factor in establishing favorable credit ratings; good credit scores are essential for securing loans.

According to a survey from CareerBuilder, SMBs are increasingly confident in their ability to secure loans this decade. Just 11 percent of entrepreneurs think gaining access to credit will be a top challenge for 2010.

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