Small businesses seeking more credit

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More small businesses will seek to increase their loan levels or lines of credit during 2008.

The latest nationwide Small Business Research Board survey released today shows that of the more than 450 owners and managers responding, 26.8 percent said they will increase the dollar value of their loan requests or raise the limit on their line of credit in 2008.

This is an increase of 3.5 points from the 23.3 percent of the small businesses that increased their loans or line of credit in 2007.

The study, which was co-sponsored by Business Today Magazine, also showed that 14 percent of respondents said they decreased their credit needs during the past 12 months while nearly 40 percent reported their loan amounts were unchanged. Slightly more than 23 percent said they had no loans or lines of credit.

During 2007, the majority of participants (53.1 percent) said they felt that access to credit was unchanged from the previous 12 months while 27.1 percent said it was “easier.” Of the remaining respondents, 14.3 percent said they described access to credit as “more difficult” and 5.5 percent indicated that access to credit was “impossible.”

While 26.8 percent will be applying for more credit during the next 12 months, 9.4 percent intend to reduce their credit needs. The remaining 63.7 percent will attempt to hold their credit needs at the current level.