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More small employers are seeking credit – and more are being turned away

Publication: The Washington Post
Published Date: 2/16/2012

Washington-Post.jpg
Substantially more small business owners sought credit from financial institutions last year than in the year prior, but the number that actually obtained it remained virtually unchanged, according to a new study. That means an increasing number of employers watched the doors to the credit market slam in their faces in 2011.

Nevertheless, owners say that problem still pales in comparison to the ones created by economic uncertainty and persistently weak sales.
 

More than half (57 percent) of small business owners attempted to obtain credit in 2011, up from 48 percent in 2010, according to the National Federation of Independent Business’s annual small business credit report released Thursday. Meanwhile, demand for credit lines and cards increased by a third during the year.

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