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Tuesday, 18 March 2014

The Idea Of Credit Improvements Seen By A Long Island Accountant

By Robbie Sutter


I did not realize that there was so much trouble for businesses to consider with credit until the subject came to my attention. This was done through an article that was published on Fox Business and to say that there were plenty of statistics would be putting it mildly. That being said, there are quite a few details that made me see just how much credit improvements has been seen amongst small businesses that have attempted to take them out. These are improvements that any Long Island accountant can attest to.

According to Fox Business, it seems as though smaller businesses are going to have a much easier time taking out loans than they had as of late. The Experian/Moody's Analytics Small Business Credit Index detailed the credit climate index and how it increased 1.2 points to 117 in the fourth quarter of 2013. What this means is that credit conditions among small businesses have been made better. For those who are in a certain type of business themselves, this is great news to look into.

You may be curious as to why loans are taken out by these businesses to begin with. There are many reasons for this, as a Long Island accountant can state the possibility of a business wanting to expand, moving to other areas in order to create bases of operation in different locations. CFO Consulting Services, along with other authorities, can also cite the importance of purchasing inventory as well. These factors stand as just a couple that help to perpetuate business in many different regards.

There is a level of concern to be had with this story, though, as the article detailed the increase of delinquencies. Keep in mind that these rates have seen a jump during the fourth quarter in 2013, moving from 0.1% to 10.2%. I do not think that anyone can argue with the fact that there is a level of concern to be seen here, especially when these rates can become largely unpredictable. Can these rates increase or will they stay the same for the rest of 2014?

I do not think that any Long Island accountant can overlook the fact that there is a level of concern to be had when it comes to small business credit. Yes, matters have improved and it has become, at least, somewhat easier for businesses to attain loans over the course of time. With that said, delinquencies have increased quite a bit and it seems as though this is going to have to be given a great deal of attention as well. Time will tell if this matter will be improved.




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