Small Business Financing Demand Trending Upward In 2013
February 21, 2013 // Franchising.com // PORTSMOUTH, N.H. - Demand for financing among small businesses is trending sharply upward at the beginning of 2013, according to a study from leading finance firm Direct Capital.
Direct Capital, which provides equipment leasing, working capital loans and vendor financing for small businesses across America, compared the number of small businesses seeking financing in January 2012 to January 2013. Demand for financing was up 66%, while the number of small businesses approved for financing also increased by about 60%.
The increased demand shows small businesses are in the market for financing to help them manage inventory, pursue new opportunities and attract additional customers as 2013 begins.
"Demand for lending is one of the strongest indicators of economic growth, and this shows us that the potential for growth in 2013 is very real. Ensuring small businesses have access to the capital they need is our major focus for this year," said Steve Lankler, Senior Vice President at Direct Capital.
Small businesses are showing other signs of preparing for growth in 2013. The NFIB's monthly small business confidence index saw a slight increase in January to 88.9, while small business hiring also rose over the same span from 0.03 hires per firm to 0.09 over the same span. While the economy has not recovered to its pre-recession levels, the hiring number is the highest since April 2012.
About Direct Capital
Established in 1993, Direct Capital provides financing for small- to mid-ticket equipment, franchise remodels and technology purchases, working capital, and business loans. The company is headquartered in Portsmouth, N.H. and operates offices in New York, California, and Georgia. You can follow Direct Capital on Twitter at http://twitter.com/DirectCapital or subscribe to its PointBlank blog at http://blog.directcapital.com/..