PORTSMOUTH, N.H. (June 10, 2013) - — Small business lending demand remained strong in May and continued to far outpace the previous year, according to the Monthly Small Business Lending Index released by Direct Capital, a leading provider of equipment leasing, business loans and working capital.
The index showed demand in May was down just slightly (less than 1%) from April’s 2013 high water mark. Year-over-year demand continues to be strong, however, as May 2013 posted a 17% gain over May 2012. Overall demand is up 37% YTD vs. 2012. A recent report from the Washington Post backed these findings, indicating that small businesses are seeking more lending as a direct result of their improving credit.
“This is the first time this year where we did not see growth in demand over the previous month,” said Stephen Lankler, Senior Vice President at Direct Capital. “But, we’re not raising any red flags over it. Demand was on pace with a very strong April and it is still crushing the levels we saw at this time last year. It will be very interesting to see how June plays out, but 37% growth in demand YTD is still a very encouraging sign.”
Direct Capital’s Monthly Small Business Index is based on an algorithm that collects data from more than 200 sources.
About Direct Capital
Established in 1993, Direct Capital (www.directcapital.com) is a financial technology company that delivers financial solutions for small & medium sized businesses, franchisors, and equipment and technology sellers. The company is headquartered in Portsmouth, N.H. and operates offices in New York, California, and Georgia. You can follow Direct Capital on Twitter at http://twitter.com/DirectCapital or subscribe to its PointBlank blog at http://blog.directcapital.com/.