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Get the facts about small business lending. Discover how to get financing in today's market.
Small business lending has been a hot topic in the news lately. There seems to be a lot of speculation out there about how small businesses are being affected by the current state of the economy. In this blog post, we'll take a closer look at the state of small business lending and dispel some of the myths that have been circulating. We'll also offer some tips on how small business owners can secure financing in today's market.
The state of small business lending today
The first myth we'll dispel is that small businesses are having a tough time getting financing. The truth is, while it may be harder to get a loan today than it was a few years ago, it's not impossible. There are still plenty of lenders out there who are willing to work with small businesses. The key is to know where to look and how to prepare your application.
Another myth that we often hear about small businesses is that they're not important to the economy. This couldn't be further from the truth. Small businesses are the backbone of the American economy. They account for more than half of all private sector employment in the United States and produce more than half of the country's GDP.
In addition, small businesses are responsible for a large portion of the innovation that takes place in our economy. They are often the first to adopt new technologies and bring new products and services to market.
The bottom line is that small businesses are essential to the health of our economy. They create jobs, spur innovation, and drive growth. And, despite what you may have heard, they are still able to get financing.
The impact of COVID on small businesses
COVID has had a profound impact on small businesses. Many have been forced to close their doors, and those that have survived have often been left with diminished revenue and increased debt.
This increase in debt is one of the biggest challenges facing small businesses today. According to a recent survey by the National Federation of Independent Business (NFIB), nearly 60 percent of small businesses are carrying more debt than they did pre-recession. This debt can make it difficult for small businesses to invest in new equipment or hire additional staff.
Despite the challenges, there are still plenty of small businesses that are thriving. In fact, the NFIB survey found that 40 percent of small businesses reported increased revenues in the past year. And, while debt is a concern for many small businesses, it's important to remember that not all debt is bad. In fact, some debt can actually be used to help grow your business.
For example, if you're looking to finance the purchase of new equipment or expand your facilities, taking on some debt may be the best way to do it. The key is to make sure that you're using the borrowed funds in a way that will generate additional revenue and help you pay off the debt over time.
How alternative financing can help small businesses get the capital they need
If you're having trouble getting traditional financing, alternative financing may be the answer. Alternative lenders offer a variety of financing options that can be tailored to meet the specific needs of small businesses.
The benefits of working with a finance company that specializes in small business lending is that they understand the unique challenges that small businesses face. They also have a wide range of financing options available, which gives you more flexibility in how you use the funds.
If you're interested in learning more about alternative financing for your small business, we encourage you to contact National Legacy Capital Group today. We specialize in working capital loans, business lines of credit, and equipment finance. We offer a variety of flexible financing options that can be tailored to meet your specific needs.
Contact us today to learn more about our small business financing options and to get started on your application. We look forward to helping you grow your business!
