Small Businesses Increase Borrowing
Small-business owners increased their borrowing during December, a new report has found. According to the Thomson Reuters/PayNet Small Business Lending Index, December saw an uptick in borrowing, with the index moving to 121.6, up from November’s 114.6 reading, which even then reflected signs of steady growth. The latest data brings the index to its highest level since March 2007, and was a 5 percent increase over data found in December 2012.
While the economy has not rebounded at a rate as vigorous as most entrepreneurs would hope, the increase in borrowing is a good sign that small-business owners plan on boosting spending and hiring over the coming year, Reuters reported. Many small companies approach lending institutions to gain capital for equipment leasing and financing, particularly new tools and technology to further propel their businesses.
These investments often precede new hiring and organizational expansion, making the surge in borrowing significant for entrepreneurs. If a small-business owner is looking to expand their business, leasing new equipment can be of significant value. Entrepreneurs should contact companies like National Funding for more information on financing and leasing options.