Fed survey indicates credit quality will rise in 2013

New data released by the Federal Reserve indicates some banks are beginning to ease their lending standards somewhat, as an increased market for business financing is leading more entrepreneurs to seek loans. The survey took into account practices at both domestic banks and foreign firms operating within the U.S. 

Bank lending supposedly on the rise 
"Most fractions of domestic banks reported having eased their standards across major loan categories over the past three months on net," read the Fed's report. "Domestic respondents indicated that demand for business loans, prime residential mortgages and auto loans had strengthened."

However, even with more relaxed lending standards and interest rates still low, economic growth is still limited. A recent report revealed the economy contracted at an annual rate of 0.1 percent in the fourth quarter of 2012, indicating lending may still be difficult for entrepreneurs to come by. Those that are lending more may be seeking additional business to keep up with the rise of smaller firms and nontraditional lenders. 

"Almost all respondents that reported having eased either standards or terms over the past three month cited more aggressive competition from other banks or non-bank lenders as an important reason for having done so," read the report.

Small businesses can still struggle 
If your business is having a rough time finding a lender, you certainly aren't alone. 
Even though standards seem  to be easing, small-business owners still often have a difficult time obtaining the capital they seek to effectively grow their businesses, increase staff levels and invest in new equipment and technology. 

If you're trying - and failing - to obtain a loan, it may be time to think outside the box. While you may be pitching your ideas to venture capitalists, big banks and local investors, why not try working with a smaller bank? A small or mid-sized institution can not only help you get the lending you seek, it can also help personalize processes to ensure your banking options fit your company's needs. 

Think a smaller bank can't handle the needs of a growing business? Small and mid-sized banks are highly competitive, knowledgeable about foreign exchange and international banking, and the specialized service an expanding firm needs to get its products and services to the public and expand, whether growth is nationwide or across the world. 

Content presented by Bridge Bank, offering flexible, customized solutions for entrepreneurs.

Getting Started

Find your ideal banker:

Featured Insights

Investment volume registers above historical quarterly average ($3.8B) at $7.1 billion. The Silicon Valley continues...

The National Federation of Independent Business released its Small Business Optimism Index for July. Sentiment among...

Inc. magazine spoke to Morgen Newman, who...

Boudin Bakery is one of the oldest businesses in San Francisco, having started in 1849 as the originator of San...

Early indicators show entrepreneurship is growing in the U.S., according to USA Today. Banks are easing credit...

Employment - Men still lag behind women. Overall, men have 699,000 fewer jobs now than they did in December 2007,...

Companies that only do three or four international sales a month are often not aware of the various payment...

In the Thumbtack.com Small Business Friendliness Survey, conducted with the Kauffman Foundation,...

The barriers to global expansion many small and growing businesses encountered in the past have decreased...

Recent News

BusinessWire
07/28/14
NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (“KBRA”) has assigned senior...
07/24/14
San Jose, CA – July 24, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
07/22/14
Conference Call and Webcast Scheduled for Tuesday, July 22, 2014 at 5:00 p.m....
San Jose Mercury News
06/26/14
The award is a donation from Bridge Bank and Heritage Bank. Mr. Science makes a...
06/09/14
San Jose, CA – June 9, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
06/05/14
San Jose, CA – June 5, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
06/03/14
San Jose, CA – June 3, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
Orange County Business Journal, Jane Yu
05/28/14
San Jose-based Bridge Capital Holdings has pegged Costa Mesa as a key location for...
05/28/14
San Jose, CA – May 28, 2014– Bridge Capital Holdings (NASDAQ:BBNK), whose subsidiary...

Twitter

Featured Insights

Featured Insight

Investment volume registers above historical quarterly average ($3.8B) at $7.1 billion. The Silicon Valley continues...

Featured Insight

Boudin Bakery is one of the oldest businesses in San Francisco, having started in 1849 as the originator of San...

Featured Insight

Employment - Men still lag behind women. Overall, men have 699,000 fewer jobs now than they did in December 2007,...

Recent News

The National Federation of Independent Business released its Small Business Optimism Index for July. Sentiment among...

Inc. magazine spoke to Morgen Newman, who...

Twitter