Working capital loans can be a vital way to enhance small businesses, but it appears some owners are letting their own financial bewilderment get in the way of success.
Financial software firm Intuit recently released survey data showing more than 40 percent of small business owners consider themselves financially illiterate.
“Small business owners and entrepreneurs are the engine of growth and the backbone of the economy,” Terry Hicks, vice president and general manager at Intuit, said in a media release. “But most of them don’t choose to become their own boss because they love balancing the books. They go to work every day because they have an idea, seize the potential, and use an uncompromising drive to get the job done.”
While 81 percent of owners handle their business’ finances themselves, 66 percent said they wish they knew more about their finances. Meanwhile, 69 percent said they have never taken out a loan for their small business – possibly due to not feeling confident in their financial knowledge.
This comes at a time when many small business owners are turning to borrowing in the face of the holiday shopping rush. Data from National Funding shows 4.3 percent of owners said they expect to borrow money over the holidays, a number that is only likely to increase.
“Whether or not a small business believes they will need to borrow money, owners should always be planning ahead and anticipate the need for financing,” said National Funding founder and CEO David Gilbert in a media release. “These days, they have more alternative lending options.”
Working with the right lender
No matter a business owner’s financial knowledge, it’s always important to work with lenders who will provide tailored financing options in a straightforward manner.
Even owners who have put off obtaining a business loan due to a lack of financial expertise may be surprised to learn how simple and straightforward options can be from alternative lenders.
For instance, National Funding loans come with minimal paperwork and no-obligation applications. Approvals are handled quickly and money can be received in as few as 24 hours.
Even better, borrowers can count on working with a professional who will be happy to walk them through every step of the process.
“At National Funding, we have a dedicated sales team that personalizes the customer experience, so they are comfortable, fully informed and equipped to make the best decisions for their business,” Gilbert said.