According to a study by the US Chamber of Commerce, about 50% of small business owners have no choice but to take small business loans to keep up with inflation by raising the prices of their products and services. Again, as per the SBA, nearly 29.3% of businesses preferred EIDL. The other 32% plan to do this in the future.
History shows that small businesses usually prefer borrowing money from family and friends and credit cards to cope with economic stress. However, with inflation impacting families and friends and credit card debts increasing after the pandemic, small businesses are now turning towards business loans to meet their requirements.
- Is taking a small business loan a good idea?
At the peak of the pandemic, the US passed the Paycheck Protection Program, which provided aid to about 6 million small businesses. In addition to the Paycheck Protection Program, EIDL loan requirements increased rapidly during these challenging times. EIDL loans, which provided lending support to small-scale companies, were severely affected by COVID-19.
- Shall all the businesses that thrive in the market survive?
We know a business should not be started just on a whim. Generally, business houses prefer to provide services and promising goods that they feel passion and pride in enhancing the benefit of individuals and the whole economy. The pandemic threatened the survival of multiple business owners. Many business owners lived up to their dreams and were doing well in the market, shattered during the hard, trying times of the pandemic.
Some business owners who worked for years to create their clientele base, offering quality services and goods, failed to keep up. If a business owner holds on to the passion even during hard times, then a small loan can help keep your business afloat. If a business entrepreneur who succeeded pre-pandemic has strong faith in the services and goods he provides, taking a small business loan is enough to give him the kickstart once again to continue his business passion.
With no state government or federal assistance available, it has become a daunting decision for business owners to choose the medium to stay afloat in this market. A business's survival depends on whether it's worth pursuing a loan.
- What are the options available for business loans?
Banks offer lending amounts at a certain premium, and loan approval is based on incoming revenues and credit scores. Lending brokers like Fund&Grow offer exclusive funding options for small businesses with flexible repayment options. You can even get funding without having to undergo extreme hassles.
1.Business Line of Credit
A business line of credit helps you draw money at any time. You can take it according to your business requirements. You can draw money in any amount as long as it is within the maximum approval amount.
2.Working capital loan
The working capital loan ensures that your business has the equipment and tools to sustain itself, generate revenue, and grow.
3.Business term loan
This loan has flexible repayment options; you can request around $10000 to $1,00,000.
Summing it up:
Before you apply for a business loan, consider all the pros and cons. Choose the one that best fits your needs. Don't rush the process; take your time.
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