Small Business Credit Index Improves

The Experian Moody's Analytics Small Business Credit Index has posted its forth consecutive quarterly improvement.

"The Experian/Moody’s Analytics Small Business Credit Index rose 1.2 points to 117 due to the growth of small-business credit balances. According to the Q4 2013 report, the increase marked the fourth consecutive quarter of improvement in small-business credit conditions and provided the highest index reading since data tracking began in 2011.

"Credit is flowing more freely to small businesses," said Mark Zandi, chief economist at Moody’s Analytics. "With more credit, small businesses are increasingly able to expand their operations. This means more investment and jobs, and a stronger economy."

Findings from the report indicated that the growth in credit balances was due in part to financial institutions loosening credit terms for small businesses, as well as an increase in business-to-business credit transactions."

The index is a positive indication that the economic recovery from the Great Recession continues. SME's are principle drivers of economic growth.  SMEs are the leading sector in job creation and, innovation.  Each requiring access to capital to fund business growth.  

The improvement of the credit index is a positive indicator for the continued recovery of the financial health of the SME sector.  

SME's were especially hard hit during the Great Recession.  The need for capital to fund growth and access to expanded credit facilities remain a pressing concern for the SME sector.

Credit|Redi is a critical tool used by SME's to improve financial health and demonstrate creditworthiness to lenders and capital providers.

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Risk: credit, market, financial health