End of the Year Report: Small Business Lending Grew

couple getting small business loan During late summer small business borrowing was on the rise, however, it dropped in August. Numbers are showing that in October it was back on the rise which could indicate that small businesses are preparing to start hiring more workers.

According to PayNet, a company that collects loan data for more than 250 lenders, small business lending rose by 11 percent in October. Further PayNet data also suggests that financial stress it also; accounts overdrawn by more than 30 days fell to 1.2 percent. Accounts that were overdawn by more than 180 days also fell by .02 percent which might matches up with data that shows consumers are continuing to pay off their debts.

Other interesting data collected showed that the average transaction was over $50,000 with an average monthly payment of $1,186. The average term per contract was just under 4 years.

According to the jobs report released on December 5th, the unemployment rate fell to 7.7 percent in November. There were approximately 146,000 new jobs added in the retail, business, and health care sectors. There is a possibility that small business aided in the rise of retail jobs.