The current economic climate continues to discourage private companies from investing, according to a new survey from Sageworks, a financial informational company which surveyed banking professionals who work closely with business owners and found that 57% of respondents believe their business clients will not increase their capital expenditures due to the current economic situation.
While more than half of survey respondents predict private companies will not be increasing capital, nearly one in four financial professionals, or 24%, said that their clients are more likely to invest in new capital. Ten percent of respondents are unsure if their clients will increase or decrease their capital expenditures. Eight percent believe the economic climate will not affect their clients’ investment decisions.
For companies applying for loans, most are seeking to finance equipment, new or upgraded facilities and other working capital. Nearly 40% of respondents said their business clients applied for loans for various working capital investments, while less than one percent applied for a loan to help fund hiring decisions.
Despite the recent, strong performance from private companies, the survey shows that many of these businesses are still hesitant to invest. Also, as Sageworks Chairman Brian Hamilton pointed out in the most recent Private Company Report, companies have had an “unprecedented” lack of hiring over the last six months
Sageworks conducted the online survey between March 8, 2013 and March 31, 2013, collecting responses from 392 banking professionals. The poll’s respondents were all clients of Sageworks and were not randomly selected.
The current economic climate continues to discourage private companies from investing, according to a new survey from Sageworks, a financial informational company which surveyed banking professionals who work closely with business owners and found that 57% of respondents believe their business clients will not increase their capital expenditures due to the current economic situation.
While more than half of survey respondents predict private companies will not be increasing capital, nearly one in four financial professionals, or 24%, said that their clients are more likely to invest in new capital. Ten percent of respondents are unsure if their clients will increase or decrease their capital expenditures. Eight percent believe the economic climate will not affect their clients’ investment decisions.
For companies applying for loans, most are seeking to finance equipment, new or upgraded facilities and other working capital. Nearly 40% of respondents said their business clients applied for loans for various working capital investments, while less than one percent applied for a loan to help fund hiring decisions.
Despite the recent, strong performance from private companies, the survey shows that many of these businesses are still hesitant to invest. Also, as Sageworks Chairman Brian Hamilton pointed out in the most recent Private Company Report, companies have had an “unprecedented” lack of hiring over the last six months
Sageworks conducted the online survey between March 8, 2013 and March 31, 2013, collecting responses from 392 banking professionals. The poll’s respondents were all clients of Sageworks and were not randomly selected.