Small businesses drive much of America’s working economy today and add a unique charm to the areas they reside in. Since these business do not receive the same kind of funding as large businesses and chains they sometimes rely on small business lending.
The Small Business
The small business is an asset to any area and gives many people the opportunity to establish the business they have always dreamed about. Since 1996 the percent of Baby Boomer entrepreneurs starting a business has increased from 14.3% to 23.4%. As of 2013 these numbers were continuing to grow. Having these littler operations helps the surrounding neighborhoods by providing work for the local population. Small businesses actually provide 55% of all jobs in the United States.
There are many expenses within a small business that some business owner’s do not take into account or need assistance with at times. While many people think about building improvement, repairs, advertising and other more obvious expenses, these are not the aspects that take up most of a business’s earnings. The largest portion of a company earnings, ranking at about 19.4%, goes to employee wages. The second most costly aspect is inventory, and that takes up about 7.7% of the earnings. Thirdly, rent accounts for 4.6% of a business’s expenses.
Small Business Lending
Funding experts are eager to help provide small business loans to people who are struggling to keep their business afloat. They try to make working capital loans as easy to obtain as possible. Obtaining funding from working capital business loans can happen quickly. A small business can now receive a loan within 24 hours to one week. Applying for these loans takes little time and requires minimal paper work and documentation. When a loan is obtained the interest rates tend to be high and the loans are often short term but different lending companies have different terms and lending plans. Many lending companies do not require liens or collateral and are tolerant of the businesses they are assisting. Best of all, there is a very high approval rate so you have a much better chance that small business lending can assist your blossoming company.
Loan companies want to help small and medium business prevail by assisting them financially when it is needed. Certain companies focus on providing small business lending to companies that have previously been turned down for unsecured business loans or do not have access to a lending service. They also aim to help new businesses as well as businesses that have come out of bankruptcy and need some extra help.