Up until recently, I had no idea that credit would prove to be such a difficult field for a number of people. An article that was posted on Fox Business brought this point to my attention and I was surprised to see the various statistics that helped to support the story. Credit improvements have been seen, though, and I'd like to think that small businesses would have an easier time focusing on them. These improvements, in my view, are ones that any Long Island accountant can focus on.
According to Fox Business, it seems as though smaller businesses are going to have a much easier time taking out loans than they had as of late. The Experian/Moody's Analytics Small Business Credit Index detailed the credit climate index and how it increased 1.2 points to 117 in the fourth quarter of 2013. What this means is that credit conditions among small businesses have been made better. For those who are in a certain type of business themselves, this is great news to look into.
There are many reasons why a small business would take out a loan, as any Long Island accountant would agree with. For one, perhaps a business would like to expand its operations and not stay relegated to one location; to say the least this is not going to be cheap. Another reason that can be cited by authorities like CFO Consulting Services is that inventory can be purchased without having to place a great dent in the business' finances. It appears as though these endeavors will be carried through easier.
There is a level of concern to be had with this story, though, as the article detailed the increase of delinquencies. Keep in mind that these rates have seen a jump during the fourth quarter in 2013, moving from 0.1% to 10.2%. I do not think that anyone can argue with the fact that there is a level of concern to be seen here, especially when these rates can become largely unpredictable. Can these rates increase or will they stay the same for the rest of 2014?
There is quite a bit to consider as far as small business credit is concerned, especially with the loans that smaller companies can take out. Up until recently, any Long Island accountant can state that they have struggled to do so, which does not amount to anything that can be considered beneficial. The fact that matters have become a little less troublesome, in this regard, is a point that's hard to overlook. With talk of delinquencies, though, it'd be a lie to say that this isn't a point that is worthy of being covered.
According to Fox Business, it seems as though smaller businesses are going to have a much easier time taking out loans than they had as of late. The Experian/Moody's Analytics Small Business Credit Index detailed the credit climate index and how it increased 1.2 points to 117 in the fourth quarter of 2013. What this means is that credit conditions among small businesses have been made better. For those who are in a certain type of business themselves, this is great news to look into.
There are many reasons why a small business would take out a loan, as any Long Island accountant would agree with. For one, perhaps a business would like to expand its operations and not stay relegated to one location; to say the least this is not going to be cheap. Another reason that can be cited by authorities like CFO Consulting Services is that inventory can be purchased without having to place a great dent in the business' finances. It appears as though these endeavors will be carried through easier.
There is a level of concern to be had with this story, though, as the article detailed the increase of delinquencies. Keep in mind that these rates have seen a jump during the fourth quarter in 2013, moving from 0.1% to 10.2%. I do not think that anyone can argue with the fact that there is a level of concern to be seen here, especially when these rates can become largely unpredictable. Can these rates increase or will they stay the same for the rest of 2014?
There is quite a bit to consider as far as small business credit is concerned, especially with the loans that smaller companies can take out. Up until recently, any Long Island accountant can state that they have struggled to do so, which does not amount to anything that can be considered beneficial. The fact that matters have become a little less troublesome, in this regard, is a point that's hard to overlook. With talk of delinquencies, though, it'd be a lie to say that this isn't a point that is worthy of being covered.
About the Author:
Go to CFO Consulting Services if you are interested in hiring a Long Island accountant for financial reasons.
No comments:
Post a Comment