American Capital Group (AMC) has revealed intentions to relax their credit requirements, for business loan products. This decision follows the findings of the Federal Reserve Bank of Kansas Citys Survey on Small Business Lending, which painted a concerning picture of tightening credit standards
American Capital Group (AMC) has revealed intentions to relax their credit requirements, for business loan products. This decision follows the findings of the Federal Reserve Bank of Kansas Citys Survey on Small Business Lending, which painted a concerning picture of tightening credit standards
The survey highlighted that 22% of participants reported reduced loan requests in Q4 2023 marking the quarter of declining demand for loans. Approval rates also saw a decrease with major banks experiencing a drop from 52% to 49% and sized banks decreasing from 68% to 66%.
"These figures highlight the obstacles entrepreneurs encounter in obtaining funding " noted Alex McAloon, CEO and Founder of AMC. "Through our credit criteria we aim to counter this trend and provide assistance to small businesses that have been hindered by stringent requirements."
Interestingly the primary reason cited by 67% of respondents for loan denials was the borrowers situation. Nonetheless AMC intends to give weight to data points such as revenue trends cash flow forecasts and business performance indicators.
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