Filing A Tax Return On Time Increases The Odds Of Getting A Small Business Loan

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Rohit Arora, Contributor

Small business loan approval rates at big banks continued the upswing with yet another new high last month, according to the Biz2Credit Small Business Lending Index™ (March 2018 figures). Big banks (assets of $10 billion+) are granting more than one-quarter of the small business loan applications they receive. The 25.5% approval percentage, up one-tenth of a percent from February, represents a post-recession high point for big banks.

With the Federal Reserve’s continuing path of interest rates increases, small business loans are becoming more and more profitable. A small rate hike means tens of millions of dollars in profit, since the big banks’ cost of capital has not changed. Big banks have a large deposit base, and they can be more aggressive in lending, especially in a strong economy. Yes, the amount of interest that a borrower must now pay will be more. However, the odds of securing a loan have also increased.

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