ATLANTA--(BUSINESS WIRE)--The nation’s small businesses reported an improved ability to access capital during Q3, representing three straight quarters of positive changes to lending markets since late 2012. Meantime, demand for capital slid, with small businesses reporting less need for financing than earlier in 2013. The results are part of the most recent Pepperdine Private Capital Access (PCA) Index report, a private capital markets data survey produced quarterly by Pepperdine University's Graziadio School of Business and Management, in partnership with Dun & Bradstreet Credibility Corp.
The Private Capital Demand (PCD) Index declined steadily during the last four quarters, dropping nearly five percentage points, indicating that businesses are less likely to borrow money. During the same period, access to financing improved for businesses of all sizes, especially for those with under $5 million in annual revenues. The smallest businesses showed the greatest gains in access to capital during Q3.
“The Q3 Private Capital Access Index demonstrates needed and sustained improvements in capital market conditions,” said Jeff Stibel, Chairman and CEO, Dun & Bradstreet Credibility Corp. “What’s key is that the smallest businesses are succeeding in securing financing through key avenues like banks and credit unions. This is an important step to ensuring businesses get the capital they need to grow and hire.”
“This study represents a welcome improvement in lending conditions since Q2,” said Craig R. Everett, PhD., Director, Pepperdine Private Capital Markets Project at Pepperdine University's Graziadio School of Business and Management. “Notwithstanding, the fact that the PCA Index still lingers well below the watershed value of fifty makes it clear that many businesses still cannot obtain the capital they need.”
The fluctuations in PCD and PCA indexes did little to change a sentiment that capital market conditions are limiting a business’s ability to expand; roughly 60 percent of Q3 respondents said the current business financing environment is still limiting their growth.
About the Pepperdine Private Capital Markets Project
The Pepperdine Private Capital Markets Project seeks to understand the true cost of private capital and the investment expectations of private business owners; providing lenders, investors and the businesses that depend on them with critical data to make optimal investment and financing decisions. The Project's small business owner surveys draw their sample from a database of businesses maintained by the Dun & Bradstreet Credibility Corp., research partners for the Pepperdine PCA Index Quarterly Reports. Reports and more information are available at http://bschool.pepperdine.edu/privatecapital.
About Dun & Bradstreet Credibility Corp.
Dun & Bradstreet Credibility Corp. is the leading provider of credit building and credibility solutions for businesses. The company helps businesses establish their credit with a D&B D-U-N-S(R) Number and provides the only business credit solution available to companies looking to build, monitor, and impact their business credit and credibility. The company's headquarters are in Los Angeles, CA with offices throughout the United States. For more information on the company, please visit www.DandB.com or follow the company on Twitter via @DandB.
About Pepperdine University Graziadio School of Business and Management
Founded on the core values of integrity, stewardship, courage, and compassion, Pepperdine University's Graziadio (GRAT-ZEE-ah-DEE-oh) School of Business and Management has been developing values-centered leaders and advancing responsible business practice since 1969. Student-focused, experience-driven, and globally-oriented, the Graziadio School offers fully accredited MBA, Masters of Science, and bachelor's completion business programs. More information found at http://bschool.pepperdine.edu/newsroom/.
