Since the economic downturn in 2009 we have witnessed the disappearance of a number of capital funding opportunities for small business owners. For many this has meant the dream of expanding their business and investing in new capital has gone away as well. One such example comes from armed forces veteran Bob Hulchanski who opened a small machine shop prior to the recession in 2006.
Bob was able to secure a Patriot Express loan to finance his start up and acquire the space, equipment and labor he needed to kick off his operation. While Bobߣs adventure has been successful and expanded to the capacity of his current location, he has been unable to acquire funding for further expansion. Despite the operation being successful on all counts, Bob has been faced with a lack of financial support.
When situations like this arise, business owners often end up leveraging their personal assets in an attempt to acquire the necessary funds for expansion. The graph below from Statistics Brain shows the primary sources from which business funding is acquired:
As the graph shows, the vast majority of prospective expansion is finance from personal savings or other personal lines of credit. The number who were able to receive business funding from the bank or government represents only a small portion of the total.
While personal financing or borrowing from loved ones might be a viable strategy for some, others simply donߣt have the connections to make this happen. While your business might be successful, sometimes you simply donߣt have the cash flow to make an expansion happen. That is why solutions such as business cash advance and unsecured business loans exist. All you need is a successful business with a history of profitability and the ability to repay the loan and youߣre set to go.
Donߣt let the tight purse strings of lenders keep you from realizing your dreams. Apply today to see how Bizlender can work for you.
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