If small business is supposed to be the economic engine driving this country, we’re at risk of stalling out. Five years after the economic collapse that led to the Great Recession, the ability for small business owners to find financing to grow their businesses still hasn’t fully recovered. That’s the finding of a new study by alternative financing company Merchant Cash and Capital (MCC).
Here’s some of what the MCC Small Business Finance Survey reports:
The difficulty obtaining financing is leading to stagnation for small businesses in the survey. More than half of respondents (54 percent) say they don’t plan to hire employees in 2014. Even those entrepreneurs who do obtain financing are more likely to use it simply to stay afloat, rather than to grow. Before the economic collapse, 32 percent say they used financing to grow their businesses; today, just 22 percent use it for that purpose. Instead, 40 percent of business owners are turning to financing just to pay the bills and keep their businesses going, up from 31 percent who used financing for this purpose pre-recession.
Is your small business struggling to find financing—or have you given up? While bootstrapping your business and operating without debt isn’t a bad thing, if lack of financing keeps you from taking advantage of opportunities to grow, that is a bad thing.
The good news is, if anyone can help you get a small business loan, line of credit or other type of financing, it’s the experts at SCORE. Visit www.score.org to get matched with a mentor. SCORE can help you assess your options, determine the best financing choices for your business, get your paperwork in order and target potential financing sources.