A new study released by Thomas Reuters and PayNet found that small businesses in the U.S. increased borrowing during the month of May, signaling optimism in the economy. The Thompson Reuters/PayNet Small Business Lending Index increased to 115.1, up from 108.1 in April.
These results come after a decline in borrowing during the first quarter of 2013, and are up from years prior. Borrowing rose 9 percent from May 2012, and the new figure ranks closely to the five-year borrowing high reached in December 2012.
Because small businesses often work on getting a small business loan in order to finance new equipment for expansion, an increase in borrowing is read as an overall positive sign for hiring and the economy. Over the past several years, an increase in the PayNet Index has correlated with economic growth across the board one to two quarters after the results of the study are released.
As small businesses look to expand their operations and improve practices, they may want to turn to National Funding for guidance. National Funding can help small business owners with equipment financing and can provide individuals with merchant cash advances to help move business forward.
