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Small business borrowing back on track in June, report says

Small business borrowing back on track in June, up 9 percent, Thomson Reuters, PayNet say

Small business borrowing back on track in June, report says

BACK TO BORROWING: Small companies stepped up their borrowing in June after a one-month pause, Thomson Reuters and PayNet said Wednesday. The two companies' Small Business Lending Index rose 9 percent to a new high of 143.3 from May's upwardly revised 131 -- a reading that was down 6 percent from April.

The index was also up 19 percent last month from June 2014. It's compiled from PayNet's database; the company creates credit reports on small businesses.

WINNERS AND LOSERS: Transportation, construction, accommodation and food service companies showed the largest increase in borrowing. Agricultural and mining companies were among those showing the biggest declines in borrowing. PayNet tracks leases as well as loans companies take out.

WHAT IT MEANS: The overall trend shows that despite some pauses, small businesses are increasingly willing to borrow to expand or improve their companies. The higher borrowing levels may indicate that more small businesses are getting ready to hire -- a trend that would be welcome after reports this week have shown hiring slowed during July.


Updated : 2021-09-25 08:56 GMT+08:00