Small businesses reported that major sources of credit including credit cards and bank loans drew back sharply last quarter, according to results from the Q3 Private Capital Access Index (PCA Index) from Dun & Bradstreet and Pepperdine Graziadio Business School.

More small businesses reported they were unable to secure credit from 14 of 17 lending categories measured including bank loans, credit cards (personal and business), and credit unions.

The number of small businesses that were able to secure a loan from a traditional bank declined 41.5% quarter over quarter, with 31% of businesses reporting that they were successful securing a bank loan as a source of funding compared to 53% the previous quarter. Trade credit - a common lending practice in which businesses agree to exchange goods without paying cash up front and the supplier is paid at a later scheduled date - also dropped significantly from 65% of business reporting success in Q2 to 43% reporting success in Q3. Successful loans from credit unions also dropped 39.2% from 51% of small businesses reporting financing success in Q2 to 31% reporting success in Q3 2019.

Small businesses reported that major sources of credit including credit cards and bank loans drew back sharply last quarter, according to results from the Q3 Private Capital Access Index (PCA Index) from Dun & Bradstreet and Pepperdine Graziadio Business School.

More small businesses reported they were unable to secure credit from 14 of 17 lending categories measured including bank loans, credit cards (personal and business), and credit unions.

The number of small businesses that were able to secure a loan from a traditional bank declined 41.5% quarter over quarter, with 31% of businesses reporting that they were successful securing a bank loan as a source of funding compared to 53% the previous quarter. Trade credit - a common lending practice in which businesses agree to exchange goods without paying cash up front and the supplier is paid at a later scheduled date - also dropped significantly from 65% of business reporting success in Q2 to 43% reporting success in Q3. Successful loans from credit unions also dropped 39.2% from 51% of small businesses reporting financing success in Q2 to 31% reporting success in Q3 2019.

To read more, click here.