Small business loans are growing in popularity. In today’s ever-evolving financial marketplace, lenders and funding experts have really come into their own. Businesses always need money to continue operating, though difficult market conditions or strained financial times may mean that there simply isn’t enough of it going around for some businesses to stay afloat.
Luckily, acquiring a small loan to weather the storm is easier today than it ever has been in the past. It is estimated that there are around 25-27 million small businesses in operation today, accounting for anywhere between 60-80% of all jobs. Clearly then, these businesses are vital to the health of our economy, and it is extremely important that there is help available for them to keep them in play.
So, what causes these small businesses to occasionally have a worse time of it than expected, given their prevalence in our society? Well, some of the costs of business are very difficult to budget out properly. We all manage our own budgets, and could have probably guessed that. Things like inventory and rent alone can eat up about 7% and 4% of revenue, respectively.
NY Marketing Professor and industry expert Adam Alter claimed that spending on unplanned expenses is the largest contributor to a person’s inability to stick to a budget. Failure to account for these expenses can send a person or a business spiraling into debt in no time.
This is where working capital loans for small businesses come into play. For those businesses looking to secure funding short-term, the United States Small Business Administration offers a tool called the “Loans and Grants Search Tool” that’s sure to offer invaluable assistance in helping businesses secure funding on terms that are favorable to them. In an extremely volatile financial environment where there is uncertainty in how you can get ahead of the game, these loans are truly becoming a go-to due to their effectiveness, favorable terms, and accessibility. Don’t hesitate to pull you or your business out of the rabbit hole by researching these small business loans near you. It may make all the difference.