The economy has picked up and small businesses are increasingly optimistic on their prospects for 2013. However, smaller companies have increasingly seen their expansion plans tempered, and even completely stifled, because of restrictive access to working capital.
The latest edition of the Private Capital Access Index for the second quarter of the fiscal year found tight credit markets continue to hinder U.S. small businesses, with less than $500,000 in revenue, from achieving growth expectations.
The index survey, prepared quarterly by Dun & Bradstreet Credibility Corp. and Pepperdine University’s Graziadio School of Business and Management, found 63 percent of small businesses said current financing conditions have interrupted growth expectations.
With limited access to working capital, 75 percent reported they have turned to personal assets to finance their enterprise.
“We need to do something to help our smallest businesses and there is no better time than during small business month,” said Jeff Stibel, Chairman and CEO of Dun & Bradstreet Credibility Corp. “The results from this second quarter study show lack of financing consistently hinders growth at the smallest companies, which in turn restricts their ability to hire. These businesses need to access capital to fully stabilize the economy.”
Faced with increasingly challenging financing options, many have dipped into personal savings, yet such a strategy can prove disastrous. Instead, small business owners should consult with National Funding on working capital offerings and small business loans that can be transacted quickly for owners in dire need.