According to an article on PRWeb.com, Biz2Cred recently conducted a study on 1,000 small businesses that had been in operation for two or more years. Each of these companies had credit scores of 650 or higher, and was involved in a banking relationship at the time the study was conducted. Biz2Credit then recorded the results of loan applications the companies made in 2012.
The overall finding?
Small business customers of Bank of America, JP Morgan Chase, Wells Fargo, and TD Bank were the most frequently rejected applicants for funding.
Morveover, Rohit Arora, CEO of Biz2Credit, this survey affirms the fears and suspicions of small business owners everywhere: that “big banks have been unwilling to lend to them.
Here are the percentages of viable candidates were rejected by banks with $10 billion or more in assets:
• Bank of America 13.5%
• JP Morgan Chase 11.6%
• Wells Fargo 11.2%
• TD Bank USA 2.9%
• PNC Bank 2.3%
Note from The Factoring Blog: Since a small business owner’s risk of rejection has been elevated, it might be a better idea of him/her to factor their receivables.