Numbering around 28 million individual businesses across the country, small businesses in the U.S. make up a very significant portion of the economy and the employees who work in these businesses make up a large percentage of existing jobs.
Despite the importance of small businesses, many owners still find that they have a lot of trouble getting approved for small business loans through traditional financial institutions (such as banks). Small business lending isn’t an easy subject to discuss, mostly because it’s so complicated and because the small businesses involved often have to prove why their business is important enough to keep alive.
But now more so than ever before, it’s essential that small businesses are given the financial help they need and the financial guidance from funding experts that will help the business get to a table place and stay there.
Maybe a small business needs a little financial help in order to page employees’ wages — which really isn’t that out of the ordinary, considering that wages typically comprise the largest portion of a business’s expenses today, even though wages make up just under 20% of total expenses.
Maybe the business is hoping to expand in order to add some extra employment opportunities for its community. Currently providing about 55% of the nation’s employment opportunities, it’s clear that we rely on small businesses to grow and thrive in order to keep a large majority of the nation employed.
Or maybe the business just wants to move to new location and replace old equipment that is causing the efficiency of the company to dwindle. Around 51% of small businesses spent money on replacing old equipment in 2014, and this percentage isn’t likely to decrease in the years to come.
So how exactly to small business loans fit into the picture? Maybe you’re looking for a secured loan, or for unsecured business loans, or for working capital loans — whatever fits your business model the best is the loan that you should have access to.