One of the biggest businesses in this country today… is small business.
Half of the workforce in America is in some way employed by small business. Currently there are nearly 28 million small businesses operating in the United States, and according to Forbes, over 540,000 new small businesses spring up in the United States every month.
How are so many businesses able to find their footing? By utilizing business finance loans.
Very few businesses begin with the necessary cash or capital on-hand to successfully establish their company. Business finance loans provide the perfect solution. Almost 40% of small business loans in 2012 were taken out to establish or maintain inventory. Startup construction companies often rely on business finance loans to purchase the basic heavy equipment they need to get the job done.
But business finance loans are not just for beginning businesses. Short term business loans are a popular choice even among established companies for a variety of reasons—to maintain inventory, to improve equipment, or to provide a financial cushion for unforeseen market shifts. In fact, over 60% of U.S. small businesses that take out loans cite as their main reason “cash flow problems”, which encompasses everything from slow sales to market disruptions from natural disasters.
In 2011 alone, over 800,000 small business loans were given out, both to fledgling companies and to seasoned pros. Lenders are investing their time and money into the next generation of American economic growth, and the returns are promising. As the number of startups and small businesses continues to grow, so too will the financial options available to them, as they take their first steps on their own journeys towards the American dream.