Loan approval percentages continue to rise as June delivered new highs for small business lending applications. Unfortunately, with such high levels of success The Fed has taken notice and is now slating its second interest rate raise since the economy has taken off. According to a report posted at Forbes by Biz2Credit CEO Rohit Arora, the Fed could increase rates from as high as 2.4% by the end of 208 to 3.4% by the end of 2020.
With such potential lending hikes oncoming, Biz2Credit has made it clear that now is the time to apply for a business loan if you are a small business owner. If not, you could see your interest rate increased by almost double over the next 2 years.
Despite this, approvals are not slowing down. Big banks are leading the way with a two-tenths of a percent increase in loan approvals from June over last month. “In May big banks had an approval rate of 25.9%, and June delivered 26.1%. This segment has been steadily rising for more than a year. Small banks also rose the same two-tenths of a percent to 49.6%, the highest rate since April 2015.”
Institutional lenders and alternative lenders (fintech companies primarily) saw a modest increase in approval rates while Credit Unions small and big banks increased by significantly higher.