The economy is recovering. However, things are still very much challenging for small business owners. Among them, access to capital remains on the top of the list.
According to the most recent study released by OnDeck, the tech-powered Main Street lender, small business owners’ access to capital is limited at best. As capital is needed for business growth, the lack of access to funding drags small business owners’ feet, slowing them down, even stopping them from moving forward.
The 2013 Main Street Pulse Report, a study OnDeck conducted on 500 business owners and 10,000 loan applicants nationwide, reveals that 73 percent of small business owners believe that the economy is getting better. Unfortunately responding to the trend is quite challenging: They are still having a hard time in accessing the much-needed capital for growth (84 percent of the respondents use funding for growth capital.)
Access to capital is very important for many small business owners. 55 percent of survey respondents said that they are seeking financing. Perhaps we should also account for 30 percent of respondents who needed capital, but didn’t think they could get approved. In total, 85 percent of small business owners need capital.
Unfortunately, access to financing is obscure: 64 percent who applied didn’t get any financing. Furthermore, 82 percent were denied by their bank.
This infographic summarizes the report findings…
So, are there any possibilities for small businesses to get capital? Yes – but need to be creative as the conventional ways to get funding (from banks) are no longer ideal.
What are the funding and financing options you have? Here are some resources for you:
Six Non-Traditional Sources of Capital for Small Business
Whether you’re growing your business or just getting started, getting capital isn’t always easy. Sometimes you have to think outside the bank.
Small Business Speak Out: Where do I get the Capital for Growth?
A look at the different venues that small business owners use to obtain capital for growth including loan approval rates and the total cost on a business, in time and money, of financing.
SBA.GOV Live Q&A Session: Finding Capital to Start your Small Business
Looking for information on how to get the money to start your small business? Join Pravina Raghavan from SBA’s New York District Office, for tips on various resources.
Financing Your Small Business With Plastic: a Capital Idea?
Credit cards ranked the third most commonly used source of capital financing, behind only bank loans and the earnings of the business. Are they ideal source of funding?
3 Reasons Why No Startup Capital is Good for Your Small Business
A shortage of available cash for starting up forces you to think creatively to achieve your business goals and helps you navigate around pitfalls, which stand between you and success.
Finding Startup Capital for Your Small Business
Most startups need funding, but fledgling entrepreneurs often don’t know where to start their search for capital. Explore all your financing options to help find the method best for you.
