New Jersey business owners are seemingly doing something right when requesting a business loan.
According to a new report out by Biz2Credit, an online lending marketplace for small business owners, nearly one-quarter (23.4 percent) of funding requests made by Garden State businesses were approved by lenders.
“New Jersey business owners have the unique combination of high average annual revenues and credit scores with a close proximity to two of America’s biggest cities,” said Biz2Credit CEO Rohit Arora. “Despite being sandwiched in between New York and Philadelphia, New Jersey-based businesses have much lower overhead costs while still enjoying the benefits of a high volumes of traffic.”
New Jersey’s neighbors New York, came in second, with approvals on just under one-fifth (19 percent) of loan requests. Pennsylvania ranked fifth, with approvals just under 13 percent.
“The high operating costs of running a business in New York City, which had the lion’s share of loan requests on our platform, had an adverse effect on entrepreneurs seeking funding,” Arora said. “Businesses in New York City, however, typically have higher revenues, credit scores and are in business longer, which bodes well during the application process.”
The Top 10 states by loan approval rates:
10. North Carolina (7.9 percent)
9. Ohio (8.8 percent)
8. Texas (10 percent)
7. Georgia (10.2 percent)
6. Florida (11.1 percent)
5. Pennsylvania (12.9 percent)
4. California (14.2 percent)
3. Illinois (15 percent)
2. New York (19 percent)
1. New Jersey (23.4 percent)