According to Q2 2015 findings from Pepperdine University and Dun & Bradstreet’s Private Capital Access Index, small businesses across the nation are experiencing a rise in revenue, and it’s affecting the demand for capital and small business loans. Over the last 12 months, 48 percent of small businesses surveyed have been reporting an increase in revenue, which is a a 4 percent increase from 2012.
With that revenue increase can come a rise in the demand for capital and small business loans: Demand for funding by small businesses has increased 9 percent since Q1 2015, reaching the highest demand since Q4 2012. In the past, demand for capital was not always satisfied, however, access to capital by small businesses has increased nearly 8 percent since the Private Capital Access Survey began in 2012, and has increased 1 percent since Q1 2015.
Despite the improvements in access to capital and the positive increases in revenue and demand for capital, small business loans still appear to be in higher demand than they are filled. Of the businesses surveyed, 61 percent feel their growth opportunities are restricted, which is 10 percent higher than this time last year, and 24 percent of businesses surveyed feel their ability to hire is restricted, up 9 percent from this time last year. These feelings of restriction could be coming from a lack of access to capital. Small business loans are still only granted half of the time and small and medium businesses are still having to rely on personal assets to fund business needs. While there has been noticeable improvement in access to small business loans and positive increases in revenue, the demand for capital still exceeds access, leaving small businesses in need of traditional and alternative funding.
Visit Access to Capital to learn more about finding funding options and resources for small businesses.
For more statistics on the state of small business, refer to the infographic below.