A new study published by Biz2Credit that analyzed 2021 industry trends among small businesses found that information technology (IT) firms had the highest average revenue ($955,793) and the best average credit score (658) and received the highest average amount of financing ($131,743) when they sought credit.
According to the study, the retail industry had the largest percentage (27.7%) of all funding issued to small businesses included in the study, while the most startups were in the transportation and warehousing industry (lowest amount of time in business on average).
Biz2Credit, an online funding provider to small businesses, analyzed the financial performance of more than 30,000 applications submitted through its online funding platform from January 2021 to December 2021 for the report. The analysis examined the following metrics: annual revenue, loan approval rates, funded amounts, business owners’ credit scores and age of business.
Key Findings
“Demand for IT services continues to boom as more and more companies arrange for remote working in the aftermath of the pandemic,” Rohit Arora, CEO of Biz2Credit, said. “IT companies saw the highest average approval rates for financing requests. Although these companies did well overall, their clients are often larger firms that take longer to pay outside vendors. Thus, they wind up borrowing money to manage their available cash month to month.”
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