One of the biggest obstacles to small business growth is access to capital. But with so many options, more than two-thirds or 39% of small businesses have never heard of alternative financing. This is in line with the November 2017 Reliant Funding Small Business report and infographic.
November 2017 Report on Financing Small Business Reliant
With estimates of the 80% small business loan rejection rate, finding an alternative source is extremely important for many business owners. The Reliant Funding report reveals how small business owners will fund their organization in the coming months, looking for new opportunities. In addition to access to capital, the report also highlights how small businesses manage their debt, what business back-up plans they might have and what they think of them. alternative financing providers. The Reliant team responsible for the report said on its website: "This is part of the ongoing process to understand the problems facing small business owners."
Reliant Funding surveyed small business owners in the retail, construction and professional services sectors. More than half of the small business owners were women and 44% of them earned less than $ 250,000.
What is Alternative Financing and Why Do Small Businesses Need It?
Small businesses are looking for alternative financing because traditional lenders, such as banks, do not lend as much as they did before. This has prompted companies to look for other sources of funding to finance their growth.
Other sources of business loans include peer-to-peer financing, accounts receivable, credit cards, hard money loans, cash advances, purchase order financing, and others.
Key figures of the report
One of the reasons why small businesses are looking for loans, is that they are optimistic about the future. In fact, 50% of small business owners who responded to the survey said they were optimistic, while 43% said they were satisfied. Only seven percent said they were discouraged.
Regarding alternative forms of financing, 49% said they knew him, adding however that they had never used it before. Only 1% reported knowing and using alternative financing services.
As for why they chose these alternative financial services to traditional lenders, five percent said that they had to get money immediately, seven percent said that they were in bad credit history and seven percent were not satisfied applying process to their bank or credit union.
Attention of the buyer
If you are a small business owner looking for another source of financing, make sure that the business with which you are dealing is reputable. Do extensive research on the company by asking for references and checking with regulatory agencies. And before signing on the dotted line, read all the fine print.
You can look at the rest of the data on the computer graphics below.
Images: Dependent Financing