Filing A Tax Return On Time Increases The Odds Of Getting A Small Business Loan
This article originally appeared on Forbes.com
Rohit Arora, Forbes.com 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.