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How Access to Capital Restricts Small Business Owners

There are so many different ways that not having access to capital can affect your business. Probably the most significant effect would be the inability to expand your company. There are also many smaller effects that are intricately tied to the growth of a business, such as a lack or reduction in hiring, or the inability to purchase larger inventories. These are just some examples and this article discusses in detail the effects of not having access to capital and offers a solution to the problem.

Many business owners have a great service but cannot grow because of a lack of access to capital. A recent report based on the “Access to Capital Survey” highlights how not having adequate funding is single most responsible reason that small business owners feel inhibits their companies from growing. The small business owners in this survey also pointed out how the lack of capital resulted in a need to reduce employees or just not hire. The NSBA established a clear correlation between a business owner’s lack of capital and his or her ability to add employees. In fact, out of all the participating small business owners in the study, more than half said they could not grow because they don’t have the money.

The owners listed several reasons for the lack of growth as a result of minimal budgets. Some examples were not being able to offer employee benefits and ultimately attract talent, as well as the inability to finance increased purchases to meet their product demand. It is easy to see how a small business owner could remain stagnate because having excellent employees and the ability to satisfy increasing demand are two of the most important growth elements of any successful business.

One of the most surprising reasons for not having access to capital was that sixty percent of business owners in the study did not know where to get a business loan or some other type of cash infusion. Many of these business owners actually had to fire employees and even close down their businesses as a result of needing a business loan. The sad truth is that many of these business owners were likely eligible to receive funding from private lenders.

There has been a surge in private business loan providers over the last two years. It is the tight credit policies from banks that have contributed to the growth in private lenders and ultimately the amount of capital currently available today for small business owners. These loan providers are available online and the entire business loan application process can be completed from a desktop computer. The funds can be utilized for any business expense or project, and bad credit is not an obstacle to receiving a business loan for your business.

Many small business owners have struggled as a result of needing additional working capital. Many businesses have reduced employees or even closed their companies as a result of the financial requirements. Today there is a financial resource to close this financial gap. Online private lenders offer capital to most business owners, the business loan application process is fast and easy, and the funds can be utilized to improve and expand your business. Small business owners today no longer have to run their business without sufficient capital.