Small Business Funding Loans. In 2020, the pandemic affected many small businesses across America. Many states imposed lockdowns and curfews, causing massive damage to the small business community. These lockdowns and curfews caused many small business owners to go bankrupt or into debt to keep their businesses afloat. With the pandemic coming to an end, many companies want to ensure that their business will see extraordinary economic growth.
In 2021, the United States had 32.5 million small businesses operating across America. These small businesses help employ 46.8 percent of the private labor force, constituting a significant part of the US economy. Most small businesses operate in three major industries: food services, construction, and healthcare.
Small businesses across America help to keep the economy stable. Without small businesses, the United States would lose about half of its workforce. Having a robust small business community will help establish the economy’s future growth.
Small Business Funding Loans – Bureau of Labor Statistics
However, many small businesses fall into hard times and might need small business funding to survive. For example, according to the Bureau of Labor Statistics, 20 percent of small businesses fail in the first year. Small businesses fail at 30 percent in the second year, and 50 percent of small businesses fail in the fifth year. About 60 percent to 70 percent of small businesses fail in a decade. It is not an easy job running and maintaining a small business.
One of the main reasons small businesses fail is bad financial management. This often occurs because the company fails to understand cash flow entering the business and the management of those finances. As a result, companies need small business funding to start, operate, maintain, or expand the future of a business. There are different pathways a company might take to receive business funding. For example, business loans, crowdfunding, investments, merchant cash advance, and grants.
Pathways To Funding
Business Loans: Companies with an excellent credit score might choose a business loan. A business loan takes on debt but will be repaid with interest in a period of time agreed by both parties, such as a bank. A business loan also requires significant underwriting time. This means that the timing of the intended use of the loan proceeds needs to be choreographed with the arrival of the loan proceeds.
Crowdfunding: Some companies choose crowdfunding as a way to gain capital. Crowdfunding has gained popularity in recent years because companies can reach out to the general public for funding.
Investments: Some companies might choose investors to invest capital into a business. The hope is that the investor will profit off their investment.
Grants: Grants come from companies, the government, or an organization. The benefit of receiving a grant is that you do not have to pay back the grant. However, grants are challenging to acquire because you have to meet obligations to receive the funding.
Merchant Cash Advance: A merchant cash advance is money given in large sums for exchange in future credit card or debit card sales. These funds are usually paid back within a 6 to 9-month repayment period.
These are some of the ways small companies might gain small business funding. 333funding can help by providing business loans through one of our partner lenders. The business loan can be approved in 1-2 weeks with a 1-year repayment. However, there are some additional requirements to secure a business loan. The other option is merchant cash advance. 333funding offers small business funding up to $10,000 to $250,000 to fund a company’s needs with flexible repayment options.
Having flexible options with 333funding will help to ensure your small business receives funding no matter which option you choose. With high gas prices and inflation increasing across America, it is essential for you to have your finances in order.
Check Out The Thee C’s
http://drugrelapseprevention.com/index.php/three-cs-cash-flow-collateral-and-credit-score/
Advocacy Releases 2021 Small Business Profiles for the States
https://www.entrepreneur.com/article/361350
https://fortunly.com/articles/what-percentage-of-small-businesses-fail/#gref
