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Infographic: How Do Small Businesses Finance Growth?

When operating a small business, owners must learn about a variety of channels that may help finance the company. While some individuals may have the capital to fund their desired initiatives, more often than not, people must seek outside means to cover monetary costs for specific projects.

This outside funding may spur growth within the business, especially when applied to certain initiatives that can help departments significantly improve. One option that many small business owners frequently choose is small business loans, as these funds are not only reliable, but also provide business owners with the peace of mind they seek. 

Seeking business loans

If you've decided to opt for a small business loan, it's essential to conduct your research before selecting the right option. Depending on your venture's size, function and number of employees, your business may be best suited by a long- or short-term loan. Be sure to actively explore the different loan options available, as companies in certain industries may be eligible for particular funds. 

Even if you're not sure whether your business will qualify for a certain loan, it's in your best interest to apply anyway. According to the Dun & Bradstreet Credibility Corp. and the Pepperdine University Capital Access Index quarterly report, 58.4 percent of small businesses applied for business loans in Q2 of 2014. Among those applicants, 54 percent successfully received funding - numbers that have only risen over the past several years. 

"What we're seeing so far in 2014 with our PCA Index is that small businesses are optimistic about growth, but hesitant to seek capital from outside sources based on a misconception that they aren't qualified," explained Jeff Stibel, the chairman and CEO of Dun & Bradstreet Credibility Corp., in a company press release. 

Recognizing reservations

As you start sifting through your loan options, be sure to select those that will be most beneficial for your brand. Since some small business owners are hesitant to reach out and learn more about loans, they may select financial options that are much riskier in the long run, such as borrowing money from friends or family, or unnecessarily opening a credit card.

While demand for small business loans decreased by 3.7 percent between Q1 and Q2 of 2014, access to private capital increased by 2.3 percent - meaning that small business owners have access to a great deal of funding options they're not taking advantage of.

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