LOS ANGELES--(BUSINESS WIRE)--Results from the latest Dun & Bradstreet Credibility Corp. and Pepperdine Private Capital Access (PCA) Index quarterly report indicate demand for capital continues to slide for small and medium sized businesses. The quarterly index measures the accessibility and demand for capital among the nation’s small businesses, as well as the transparency and efficiency of private financing markets. The Q3 2014 PCA Index summary report is available here.
The PCA Index number remains stable since the second quarter results, decreasing by only .3 percent. The PCA numbers reflect stability in securing loans and other business financing sources compared to PCA numbers in second quarter. Showing a more dramatic decline, small businesses’ demand for capital in Q3 decreased 6.2 percent since last quarter’s results.
“Businesses are still weary of the current economic environment when it comes to their outlook accessing capital,” said Jeff Stibel, CEO and Chairman of Dun & Bradstreet Credibility Corp. “They are also growing more dissatisfied with the financing options that are available to them, likely based on the lack of awareness of their alternatives, as traditional business loans are consistently the most pursued option each quarter.”
“Small businesses are increasingly self-reliant and lenders are continuing to show a great deal of restraint in lending to small enterprises,” said Dr. Craig Everett, director of the Graziadio School’s Pepperdine Private Capital Markets Project. “When businesses are forced to grow organically using only retained earnings, their growth opportunities are capped at a very low level. This reality is starting to have profound impacts on both hiring and spending on business improvements.”
|Other key findings from the Index include:|
|•||Fifty percent (50%) of respondents say the current business environment is restricting their ability to hire new employees, a 2 percent increase from Q2’s 48 percent.|
|•||Fifty-eight percent (58.4%) percent of private businesses (who attempted to get financing) attempted to get a bank loan in the last three months and 54 percent of them were successful.|
|•||Twenty-five percent (24.9%) of those respondents (that attempted to get financing) applied for asset-based loan in the last three months and only 30 percent of them were successful.|
The Q3 2014 Index report was derived from 2,361 completed responses collected from July 22 to August 15, 2014 and contrasted with survey results collected from May 9 to May 17, 2014.
About Pepperdine University Graziadio School of Business and Management
Founded on the core values of integrity, stewardship, courage, and compassion, Pepperdine University’s Graziadio School of Business and Management has been developing values-centered leaders who advance responsible business practice since 1969. Student-focused, experience-driven and globally oriented, the Graziadio School offers fully accredited MBA, Masters of Science, bachelor’s completion and non-degree executive business programs for business professionals, entrepreneurs, managers and senior executives at all stages of their professional and personal development. The Graziadio school regularly appears in MBA rankings as one of the best business schools in Los Angeles. More information: http://bschool.pepperdine.edu/newsroom
About Dun & Bradstreet Credibility Corp.
Dun & Bradstreet Credibility Corp. is the leading provider of business credit building and credibility solutions for businesses. The company helps businesses establish their credit with a D&B D-U-N-S® Number and provides the only business credit solution available to businesses 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. Twitter: @DandB