To fund growth, new jobs and capital expenditures, small business owners need access to capital. And yet, 91 percent of successful entrepreneurs cite the difficulty of raising capital as a top barrier to success.1
Many well-positioned growth businesses and promising start-ups don’t meet all the criteria for standard bank loans in terms of collateral, equity or experience. It is critical to the success of your business that you develop a methodical plan for exploring and securing capital.
Accessing capital with agreeable terms can be time-consuming and challenging, particularly for undercapitalized growth companies and early-stage businesses. The path to a sustainable business depends largely in establishing working relationships with local bankers and developing business plans that successfully pay off capital financing. It appears that many business owners give up on the idea of access to outside capital, rather than accept how critical it is for success.
The challenges of access to capital have broad economic implications. Statistics from the Small Business Association show there is a direct correlation between access to capital and job growth. About 46 percent of business owners who seek capital indicate they would invest in new employees and equipment if capital were available at the right terms.2
Owners are leaving access to a viable source of capital on the table for countless reasons, including the fears that they won’t qualify and of getting overwhelmed by the required paperwork. More than 80 percent of owners do not consider flexible and affordable alternative options, such as Small Business Administration loans or supplier financing.3 It’s important for you to explore financing options and build relationships with banks and non-banks with expertise and products for small businesses.