While an influx of small businesses opened during the height of the recession, a recent Experian study found that between 2010 and 2014, small-business start-ups decreased by nearly 45%. As companies matured and the economy improved, less credit was needed for growth.
The greatest increase in small-business borrowing occurred between 2010 and 2011 (138%). Although lenders extended significantly more credit in 2014 than they had five years prior, credit balances grew by only 18% from 2013 to 2014, representing a leveling-off of overall demand rather than a response to improved GDP.
By staying on top of the latest small-business trends, lenders can gain insight into which industries and regions are experiencing the highest growth and focus their marketing efforts.
