Small-business financing gets tighter; try these tips if you need a loan now

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المملكة العربية السعودية أحدث الأخبار,المملكة العربية السعودية عناوين

Why the type of loan is more important than how fast you get it

It’s been a difficult year for business owners seeking financing, according to NerdWallet’s 2023 Small-Business Financing Index. While loan volumes are relatively stable, high interest rates and low optimism may make some entrepreneurs reluctant to apply for funding.

Financing index trails 2022 NerdWallet’s Small-Business Financing Index was in the 100s as recently as August 2022. But since then, it has fallen to new lows of around 91. This indicates that small-business owners are facing higher interest rates, using less financing, having more trouble keeping up with bills and feeling less optimistic about their futures than they were in our last report a year ago.

But in June, it dropped to a new low — 90.7, down from 99.2 a year previously. And July’s reading was 90.9. High interest rates drag the index downward, and this summer also saw relatively high levels of credit card and payment delinquencies. To make those documents as strong as possible, you may want to include monthly balance sheets and income statements instead of annual ones, says John Bovard, a Cincinnati-based certified financial planner and owner of Incline Wealth Advisors.

“We really want to try to support businesses in the community as much as we can,” he says. “We’re willing to give them the benefit of the doubt if it’s close.” “Banks usually have the lowest interest rates on the market, but not everybody is able to acquire capital through them. So CDFIs are the best next step,” Martinez says.

 

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المملكة العربية السعودية أحدث الأخبار, المملكة العربية السعودية عناوين

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