2014 Predictions For Small Business
Predictions were made for small businesses for the year 2014, and as we really get into the New Year it will become clear if these predictions will pan out. According to Fox Business, one prediction that was made for the year 2014 is that small businesses will start to see more access to working capital. Many experts believe that this year the economy will finally come back from the economic crisis of 2008/2009. It has been a long and slow journey since the economic recession, but it appears that with the creation of different lending opportunities and small banks loosening their credit requirements towards the end of 2013, access to capital should be obtainable.
…one prediction that was made for the year 2014, is that small businesses will start to see more access to working capital.
In the past small business owners thought of funding options as a choice between a fixed bank loan, alternative financing or venture capital. In 2014 we are optimistic we will see a mix of different forms of financing for the small business owner. Experts believe that in order for small businesses to have the access to financing they need to fuel their business, one must look at financing options available as a ‘portfolio’ of investment options. For the first time in years the small business owner could have different options to help them improve their cash flow. It is important that these business owners look at their financing options based on the different situations additional financing is needed.
Some argue that it is always important to have a good long-term relationship with a bank for the overall health of a business. However, a bank term loan may not meet the financing needs of a restaurant owner who might need access to funds quickly. There are also a good portion of Main Street business owners who don’t necessarily have the credit score, time in business, or revenues to meet banking requirements.
The important take away is that there are options. Before jumping into a business relationship with any financing institution ask yourself the following questions:
- What is the minimum credit score required for financing on the particular program?
- What are the underwriting requirements?
- How quickly can you receive funds?
- Do I need the money now?
Based on your answers above you should be able to figure out what your situation looks like and what form of financing will work best. If it seems overwhelming just remember as a business owner, it’s always better to have too many options for capital then none. Even a month into the New Year it’s not 100 percent certain what 2014 will bring but we stay optimistic with a trend of new opportunities for small business owners.