There was a time in the last few decades where the United States saw the radical depletion of “Ma and Pa” shops around the country, being enveloped by the success of large corporations and franchises. It was difficult for them to compete with the low prices that chains could offer consumers. However, with technology improving and cost-of-production decreasing, small businesses have started coming back with a vengeance.
Some people may still think of small businesses as a dwindling market, but there are currently 28 million independently owned businesses throughout the United States that account for an estimated 54% of all the sales in the country. Considering most of their main competitors are involved in some sort of franchise, those numbers are surprising.
Unfortunately, one problem that these small companies must face, are unforeseen expenses that come out of a multitude of situations. In order to combat these costs, many owners will turn to small business loans to cover the costs now, so they can pay for them later.
Just in 2014, about 51% of small businesses spent money replacing old and broken equipment, or maintaining their current IT structure. Not all companies will have the capital to provide for these services right off the bat. Small business lending is a way for them to get back on their feet so as to keep operating and making the money they eventually need to pay back.
In some cases, owners may decide to use small business working capital loans, that can prove funding for the everyday financial needs of running a business. Some of these businesses find they are not quite receiving the success they would like, may choose to put this money towards new strategies for gaining consumer attention. In order to grow their business, 44.6% of these small companies plan to invest in new customer acquisition to incorporate a variety of new marketing techniques.
Working capital business loans can provide small companies with the capital to give them options for expansion. Funding experts can ensure that an owner receives the most efficient small business loans, without borrowing more than they can handle. When handled correctly, small business loans can make a company extremely succesful.