NEW YORK, December 14, 2021 (GLOBE NEWSWIRE) – A new study released by Biz2Credit that analyzed 2020-2021 industry trends among small businesses, finds that information technology (IT) companies have received the most funding of any industry in terms of volume, the highest average funding amount, and the highest average income. Additionally, IT business owners had the highest average credit score. The accommodation and food services industry was second in terms of total funding volume. Foodservice companies also had the highest funding approval rate.
the Biz2Credit 2021 Best Small Business Industries Report analyzed the financial performance of over 200,000 businesses that have used the company’s online funding platform to apply for funding, including forgivable loans through the Paycheck Protection Program (PPP) of the SBA, in 2020-2021.
The analysis looked at the following metrics: annual revenue, operating expenses, loan approval rate, total amounts funded, business owner credit scores, and age of the business.
The main findings of the study include:
The sector with the highest total funding volume in 2020 was the Technological Information (IT) industry, which obtained 18% of all funding issued. The second most funded industries in the country were accommodation and food services (15.3% of funding volume) and health care and social assistance (8.2% of funding volume)
THIS business owners had the highest average credit score (636), followed by real estate (633), finance and insurance (624), professional and technical (623) and health care (619).
The companies of IT sector had the highest average income ($ 1,518,640). Wholesale trade ($ 1.3 million), manufacturing ($ 1.1 million), retail trade ($ 750,000), accommodation and food services ($ 626,000) and health care and social assistance ($ 612,000).
Accommodation and food services had the highest approval rate for financing requests at 57%. Retail trade (55%) and healthcare (54%) follow closely.
Transportation and warehousing was the industry with the youngest companies, which corresponds to the greatest number of recent startups. Health care and social assistance had the oldest companies with an average age of 91 months (7.6 years).
âThe demand for IT services has increased during the pandemic, resulting in improved financial performance,â said Rohit Arora, CEO of Biz2Credit and one of the nation’s leading experts in small business finance.
âAccommodation and food services had the highest average approval rates for funding requests. This was the second largest percentage of funding given to small businesses, âArora added. “These companies suffered a lot during the pandemic and were able to take advantage of financing programs like the Paycheck Protection Program (PPP) that were put in place to help them.”
CPA firms have proven invaluable to small business owners during pandemic
The report also analyzed how often companies across different industries worked with a Chartered Professional Accountant (CPA) on funding applications. He looked at data from over 40,000 small businesses that have partnered with CPA firms to process and fund more than $ 1 billion in PPP loans through the CPA business finance portal. The cloud-based funding platform was developed by Biz2Credit and CPA.com specifically for accountancy firms and recently added a term loan option to support the growing role of CPA firms in business advisory services. .
The platform data was analyzed as part of the Biz2Credit report. The top five industries working with CPA firms are accommodation and food services (17.8%), construction (13.6%), healthcare (13.3%), professional services (12.0%) and other services (9.5%), which include beauty salons, repair shops, laundry services and a range of other services.
“We know from our experience of small business relief efforts during the pandemic that CPAs are a critical bridge in securing funding for many business owners,” said Erik Asgeirsson, President and CEO from CPA.com. âProviding CPA firms with easier access to financing for their clients will have benefits going forward, but especially for industries that are less successful as the recovery strengthens. “
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 survey have fewer than 250 employees and less than $ 10 million in annual revenues. The report covered small businesses across the country, from start-ups to established businesses. Biz2Credit also analyzed Paycheck Protection Program (PPP) loan data from the SBA database.
The report covers industries based on the NAICS classification system, including the following:
Accommodation and catering: Restaurants and bars, caterers, hotels, motels, and others.
Business and professional services: Accounting and tax preparation, bookkeeping, payroll services, as well as legal, marketing and design services.
Health care: General medical services, physicians’ offices, dental offices, visiting nurse services, residential care facilities, physiotherapist offices, mental health clinics.
THIS: Software developers, software consultants, high tech recruiting firms.
Manufacturing: Companies involved in the manufacture of durable and non-durable goods.
Personal services: Lounges, gymnasiums, dance and yoga studios, laundry and dry cleaning, landscaping, cleaning services and more.
Retail business: Physical stores, e-commerce businesses, clothing and fashion, florists, grocery stores, drugstores, home furnishings and more.
Wholesale: Food distributors, grocery wholesalers, distributors of various durable goods.
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]