Trends

 

08 09 2013

08 09 2013

Small Business Owners Worry about Increasing Interest Rates

Some small businesses have seen steady gains over the last several months, and anticipate their business will grow during the rest of 2013 and into 2014, Reuters reported. Lending standards remain tight, however, making getting a small business loan difficult for entrepreneurs across the country.

Now, small business owners have something else to worry about – rising interest rates. Interest rates have shot up over the past two months, and are now approaching the highest levels since April 2011.

These rates are expected to affect consumers as well as small business owners. Small businesses rely on customers to fuel their profits, and with higher interest rates on financial debts, consumers may spend less.

Michael Muzyk, president of Baldor Specialty Foods in Bronx, N.Y., told Reuters that if consumers feel the effect of higher rates, it will “ultimately have a net effect on us.”

Small business owners recognize slow economic growth has frustrated entrepreneurs for years, and according to Reuters, economists are beginning to agree with this assessment. Some economists projected overall economic growth rate as low as 0.3 percent for second quarter 2013, in response to the 1.8 percent growth in first quarter 2013. In fourth quarter 2012, the economy saw just a 0.4 percent rise over the three-month period.

This growth has proven too slow for many small business owners – hundreds of thousands of businesses have closed over the past several years. Between 2008 and 2010 alone, 170,000 businesses closed down operations, a 2012 Biz Journals report found. Now, with interest rates on the rise and lending standards as tight as ever, many small businesses are struggling to keep their entrepreneurial dreams alive.

Small business owners who are struggling due to weak demand or who are facing other financial difficulties can come to National Funding for guidance. National Funding can offer assistance with getting a merchant cash advance and providing equipment financing options for companies that need an extra financial boost.

 

Featured


  • Working capital loans for small businesses

    Working Capital Loans for Small Businesses

    National Funding knows that small businesses are the fabric of America. That’s why we’ve made your business, our business by providing thousands of working capital loans to small and midsize companies in every state in the country. Every business owner knows that working capital is the lifeblood of a business. It’s money for inventory, bill… […]

  • Future proof your business

    How to Future-Proof Your Business

    After the holiday rush, it's still important for businesses to continue innovating. To maintain longevity and keep an edge over their competitors, managers need to constantly think of ways to future-proof their companies. Although it can be difficult to know what exactly is coming next, a brand can take a few steps to ensure that a company's]… […]

  • What are bridge loans, and how do they work

    What are Small Business Bridge Loans and How Do They Work?

    As every entrepreneur knows, starting or growing a business requires capital. Equipment, supplies and space all cost money, and are all required to getting the company going. Business owners have several options to purchase or rent necessary items. Some people are able to save up enough funds to cover initial costs, while others seek out… […]

  • Small business automation tips

    Small Business Automation: 4 Effective Tips for Success

    Running your own business isn't easy. There are countless tasks to accomplish and limited time to spend on them. Luckily, business owners today have technology on their side. Automating some of your business processes is beneficial on multiple levels. First, it saves you time and energy that you can be dedicating to another important feature of… […]