NEW YORK, Nov. 18, 2021 (GLOBE NEWSWIRE) – In a review of trends in small business finance, the new Biz2Credit recovery ranking for 2021 found that companies in the Financial Services and Insurance industry recovered the fastest from the COVID-19 pandemic compared to other industries. These companies experienced the strongest recovery from COVID-19 lockdowns, as financial services and insurance companies had high demand for expansion capital, but low level of distress.
New Biz2Credit Recovery Ranking identified the most recoverable industries based on the number of loans approved in PPP Round 1 and PPP Round 2 (Figure 1 only), as well as the aggregate demand for growth capital of small businesses in different economic sectors. The proprietary research looked at industries that experienced a higher degree of recovery from the pandemic and were in a stronger financial position in 2021 compared to 2020.
This new ranking matrix measures the resilience of companies in different sectors based on their ability to bounce back from the economic shock of the pandemic. The Biz2Credit Recovery Ranking was created to assess the extent of the recovery from the COVID-19 pandemic across all industries.
• A high percentage means that companies in a particular industry are recovering well from the pandemic.
• A low percentage means that companies in a particular sector are recovering poorly from the pandemic
Ranking is an exclusive measure of the demand for government funding and the need for an industry relief.
|Biz2Credit Recovery Ranking: Top 10 Ranked Industries|
|Rank||Industry||Recovery rate (index)|
|1||Finance and Insurance||67%|
|3||Real estate and rental leasing||53%|
|7||Professional, scientific and technical services||46%|
|8||Health care and social assistance||46%|
|ten||Administrative, support, waste management, sanitation services||44%|
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Higher credit demand, higher payback (Quadrant I)
Industries in this quadrant had a strong demand for credit and are better placed to benefit from access to additional capital. These industries include finance and insurance; Retail business; Administrative and support; and Waste management and remediation services.
Lower credit demand, higher payback (Quadrant II)
Industries in this quadrant have been relatively less affected by the pandemic and anticipate a recovery without making strong demands for growth capital. These industries include real estate and rental and leasing and services (except public administration).
Higher credit demand, lower payback (Quadrant III)
Industries in this quadrant had a high demand for credit but also needed considerable help from government lending programs, especially PPPs. These industries include information technology (IT); Professional, scientific and technical services; Accommodation and catering services; Health care and social assistance; Wholesale trade; and Manufacturing.
Lower credit demand, lower recovery (Quadrant IV)
Industries in this quadrant have been severely affected by the pandemic and are experiencing a slow recovery, aided in most cases by significant relief funding from the government. These industries include construction; Transport and warehousing; Educational services; Arts, entertainment and recreation; and Public administration.
“In this report, our data scientists found that small businesses in certain industries have experienced a greater level of recovery from the impacts of the pandemic. Financial and real estate companies have been exceptionally successful in recovering from the pandemic, ”said Rohit Arora, CEO of Biz2Credit and one of the leading experts in small business finance. “Retail trade has also rebounded financially. Their challenges are now linked to the supply chain, rather than consumer demand. “
Biz2Credit’s Best Small Business Industries Study Methodology
The Biz2Credit Recovery Ranking is presented in the new 2021 Best Small Business Industries Report. In this study, Biz2Credit, a leading provider of online finance for small businesses, analyzed the financial performance of more than 200,000 businesses that submitted funding requests through the company’s online finance platform. . The objective of the study is to identify the main industries for small businesses during the previous year and to measure the performance of the companies according to their affiliation with the industry. All of the companies included in the analysis have fewer than 250 employees and less than $ 10 million in annual revenue. The report covered small businesses across the country, from start-ups to established businesses.
Founded in 2007, Biz2Credit has arranged over $ 7 billion in small business financing. The company extends its cutting-edge technology into customized digital platform solutions for banks and other financial institutions, investors and service providers. Visit www.biz2credit.com or Twitter @ Biz2Credit, Facebook and LinkedIn.
Contact: John Mooney, Over The Moon PR, (908) 663-2121, [email protected]