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2016 Small Business Credit Survey
Demographics and Performance
Comparing the characteristics of respondents from Fourth District states* to the results for all 10,303 survey respondents across the US, we find that small businesses in our region:
- Tended to be larger, as measured by revenue size (over $1M)
- Had better credit scores
- Were more likely to be owned by individuals over age 55
- Were less likely to use the owners’ personal funds (and more likely to use external financing) as their primary source of business funding
- Were less likely to report challenges making debt payments or obtaining credit
Relative to the entire sample of small businesses, Ohio firms:
- Tended to be larger, as measured by revenue size (over $1M)
- Had better credit scores
- Were less likely to report financial challenges, and less likely to report difficulties making debt payments, obtaining credit, or covering operating expenses
While Pennsylvania firms:
- Were less likely to use contract workers
- Were less likely to use the owners’ personal funds (and more likely to use external financing) as their primary source of business funding
- Were less likely to report revenue growth in the prior year and expected revenue growth in the coming year
Financing Experiences
Comparing the financing experiences of respondents from Fourth District states* to the experiences of all 10,303 survey respondents, we find that small businesses in our region:
- Were less likely to report they were deterred from borrowing because they didn’t think they would be approved; they were more likely to be debt averse
- Were less likely to have sought financing to cover operating expenses
- Were less likely to cite their chance of being funded as a driving factor in choosing a lender; they also were less likely to say product flexibility or the speed of a decision on their application were factors that influenced their choice of lender
- Were more likely to have applied for a loan or line of credit and less likely to have sought an equity investment or trade credit
- Were less likely to have applied for financing at large banks, credit unions, and online lenders
- Reported higher approval rates at large banks
Relative to the entire sample of small businesses, Ohio firms:
- Were more likely to report their outstanding debt exceeded $1M
- Were less likely to report they were deterred from borrowing by the cost of credit or because they didn’t think they would be approved
- Were less likely to have sought small amounts of financing (less than $25K)
- Were less likely to have sought new credit cards, trade credit, mortgages, or personal loans for their business
- Were more likely to cite cost as a factor in choosing a lender
- Were less likely to have applied for financing at an online lender or CDFI
- Were more likely to have received financing
While Pennsylvania firms:
- Were more likely to be debt averse
- Were more likely to cite cost as a factor in choosing a lender
- Were less likely to have applied for financing at an online lender or CDFI
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