Experian / Moody’s Analytics Q3 Small Business Credit Index Reaches Second Consecutive Record-Breaking Mark


Experian’s Business Information Services today releases the Q3 2013 Experian / Moody’s Analytics Small Business Credit Index. According to the report, small-business credit quality improved markedly in the third quarter, lifting the index 2.3 points higher from 111.7 in the second quarter to 118.5. This is the highest mark on record and the second consecutive record-breaking mark since the index began tracking in 2010.

Highlights in the most recent report include a rapid rise in small business credit balances, the fastest expansion in two years. The net percentage of banks reporting stronger loan demand from small firms hit an eight-year high in the third quarter. While the appetite for credit improved, delinquency rates have fallen at a consistent pace, indicating many small businesses are rebounding despite an uncertain political climate and underwhelming job numbers.

“For the last year, we’ve seen drastic improvements in small business credit conditions, and it’s primarily been fueled by small businesses reducing debt and paying off financial obligations,” said Joel Pruis, Experian’s senior business consultant. “Moving forward, it will be imperative for small businesses to continue this trend if we want to sustain recent successes. The ability to build and maintain a strong credit profile will help them obtain the appropriate funding to uncover new growth opportunities.”



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