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America Counts: Stories Behind the Numbers
Ability to Borrow Money Offers Clues to Financial Health of Businesses
In the business world, applying for credit and getting it speaks volumes about a company’s financial strength.
Borrowing allows firms to expand, cover cash-flow gaps and invest in growth. And when a company’s credit application is approved, it signals solid financial footing and operating health.
The U.S. Census Bureau’s latest Annual Business Survey, which asks employer businesses (those with paid employees) whether they applied for new credit in the previous year, shows a statistically significant 1.3 percentage-point change in the share of employer firms that reported applying for new credit from 2020 (14.3%) to 2023 (13.0%).
Delving deeper into the credit landscape over a three-year period — from the amount of debt companies took on to who the lenders were — paints a clearer picture of companies’ financial well-being.
Continue reading to learn about employer businesses that sought credit in 2023.
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Telling the Story of the Nation’s Smallest Businesses
The Census Bureau’s Nonemployer Statistics provide data on the nation’s 29.8 million smallest businesses without paid employees.
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