Small Business Owners Sacrificing Retirement Accounts to Stay in Business
A new survey by American Express has found that small business owners are neglecting to set aside money for retirement. According to the report, 60 percent of small business owners in the U.S. are not on track to save enough money for their golden years. Many blame the troubled economy, as entrepreneurs still find getting a small business loan to be difficult.
When the recession hit, a large number of small business owners found themselves supporting their businesses with their own personal savings, or failing to reserve any money for retirement. This practice has continued and today, 73 percent of small business owners say they’re worried they won’t be able to save for the lifestyle they want in their later years.
Not saving over the long run due to financial difficulties and tightened lending standards has forced some owners to take drastic steps when they realize they have nothing reserved for themselves. To make up for years of not saving, some small business owners have had to start setting aside large chunks of money to race against the retirement clock. Others have had to take even greater risks, and are waiting until retirement to sell their business – these owners hope to make enough off the sale to support themselves for the foreseeable future.
Many business owners believe it’s more important to funnel money into their companies and that their individual finances can wait. Proper financing, though, can provide small business owners with the working capital they need, without having to constantly take a backseat to company issues. If a small business owner needs some extra financing to make ends meet, they can come to National Funding. National Funding can provide entrepreneurs with a merchant cash advance and can offer advice on other financing options, without having to exhaust a retirement account.