Small Business in the News: September 1-9, 2016

We know there is too much to keep up with when you’re a busy entrepreneur, so we compile small business news highlights each week for you to read only what matters most. Here is a summary of the top stories for September 1-9, 2016.

72% of Small Business Owners Don’t Know Their Credit Score

A survey released by Manta shows almost three-quarters of small business owners don’t know their business credit score. Even more surprising, almost sixty percent of respondents don’t know where they can access their credit score. The findings of the study were based on responses from 2,900 small business owners.  Read more…

Study Reveals Women Entrepreneurs Get Smaller Loans at Higher Rates

A new study from Fundera found that female entrepreneurs are asking for less financing than their male counterparts, but are receiving those loans at higher interest rates. The study, consisting of just over 8,000 small businesses that applied for credit between February 2014 and June 2016, shows a systematic disparity in how men and women entrepreneurs can finance their small business.  Read more…

New Study Shows HR & Benefit Trends of Small Businesses

A study released by the National Association of Professional Employer Organizations (NAPEO) showed that 14-16% of small businesses with less than 100 employees are outsourcing their HR needs via a professional employer organization (PEO). Prior studies have found that businesses utilizing PEO’s grow quicker, have less employee turnover, and a higher business survival rate. Read more…

Traditional Banks Adopting Practices of Alternative Banks

Brick-and-mortar banks are beginning to analyze social media accounts to look for financial clues that will indicate the credit risk of their borrowers, which is something alternative lenders have been doing for a while now. Banks are starting to examine vacation photos, utility records, Amazon.com payments, and other sources. Read more…

Bank Partnerships May Help Lower Costs

Customer acquisition costs currently take up about 25% of a lenders revenue, which is likely passed onto borrowers.  According to new research from Moody’s, partnerships with banks may help US marketplace lenders that target small businesses compete more effectively by lowering costs and making customer acquisition easier. Read more…

Small Business Loan Approval Rates Drop

Details from a newly published report shows small business approval rates have dropped both at large banks and alternative lenders. Some experts credit turbulence in international markets, such as Britain’s announcement to leave the EU. It should be noted, however, that institutional lenders’ approval rates currently match an all-time index high, while small banks saw a slight increase in approval rates. Read more…

 

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