October Sees Consumer Sentiment Hitting New Highs
Determining when it’s a good time to seek out more business capital can be difficult. After all, no business owner wants to borrow money for expansion if the economic realities of the marketplace won’t support it.
With that in mind, recent news regarding rising consumer sentiment should come as a good sign for owners considering such a move.
Reuters reported U.S. consumer sentiment rose to its highest level in more than seven years during October. This increase was attributed to more positive feelings regarding personal finances and the national economy.
The Thomson Reuters/University of Michigan index reading showed consumer sentiment came in at 86.4 – the highest reading since July 2007.
“The data show absolutely no signs that fear and panic is about to overtake the consumer sector,” survey director Richard Curtin was quoted as saying.
Economic theory maintains that more confident consumers spend larger amounts of money, a great environment for small business expansion to take place in.
Sentiment rise not a fluke
Small business owners looking for assurance that October’s rise in sentiment isn’t an aberration need look no further than the same index for September.
Thomson Reuters and the University of Michigan reported September represented healthy gains for consumer confidence. Not only did many consumers believe the economy was set to improve further, they also expected to see gains in personal income. In fact, more households forecast rising income than at any other time in the survey’s history since September 2008.
“The renewal of income growth is particularly important for sparking increased consumer spending in the year ahead,” Curtin said in September. “Moreover, given the anticipated changes in monetary policy, strong income gains will be needed to bolster spending given the diminished positive role of household wealth.”
Making the most of rising confidence
The question for business owners is what kind of loan option makes the most sense. For instance, instead of more traditional small business working capital loans, owners also have the option of obtaining a merchant cash advance.
These funds can be used for everything from increasing inventory and opening new locations to purchasing equipment and renovating existing space.
For many business owners, the best part of a merchant cash advance is the fact that the loan is repaid through a set percentage of credit card transactions at the business, meaning repayment only occurs when businesses are receiving money from consumers.