As Banks Lend Less Money, Small Businesses Need More.
Here are fast facts and statistics from https://www.inc.com/tor-constantino/as-banks-lend-less-money-small-businesses-need-more-why-decentralized-finance-could-be-fix.html
Banks are becoming less reliable when it comes to lending to small- and medium-sized businesses.
• Since the beginning of the year, the top-25 banks have set new lows in total lending at a time when “…small businesses and households find it harder to obtain reasonably priced credit.”
• According to a Federal Reserve report, less than half of small businesses say their credit needs are met.
• A report from the Small Business Roundtable found that 28 percent of surveyed SMBs stated that their biggest short-term challenge was adequate cash flow.
• The Small Business Administration finds that more than 80 percent of businesses fail because of cash flow issues.
• And since December 2020, an average of 30 percent of SMBs closed in the following business sectors: food/accommodations, arts/entertainment, services, manufacturing, and retail.