Do you have a great business idea that you want to get off the ground? Do you have enough money to launch your new product? Starting a new business or launching a new product can be expensive. If you do not yet have the money you need to achieve your business goals, you might consider working capital loans to help get you started.
If a new business is your dream, you are not alone. The number of Baby Boomer entrepreneurs starting a business since 1996 has grown from 14.3% to 23.4% and counting as of 2013. In fact, the 28 million small businesses in America account for 54% of all U.S. sales. In addition, small businesses provide 55% of all jobs. Working capital loans are one way for new business owners to get a start.
Funding experts indicate that working capital loans can allow funding to happen quickly. Many of these loans also have high approval rates and are very tolerant of businesses. In fact, some loans can be obtained with no liens or collateral needed. In some cases, working capital loans for small business are even available to new businesses or businesses that have come out of a bankruptcy.
The small business lending market is a competitive one and no matter what your credit history or business experience it is likely that you will be able to find an institution to assist you. Whether your goal is to open a photography studio and clothing boutique on the main street of your hometown or a auto body repair shop in an abandoned gas station, small business loans are available for you.
Even businesses that are off to a great start sometimes need additional working capital. In 2014, for example, 51% of small businesses spent money either replacing old equipment or maintaining current IT infrastructure. Equipment upgrades and IT maintenance are crucial to the success of many small to medium businesses, but they can be very costly.
In addition to upgrades, small and medium businesses also have the typical expenses of any larger company. Employee wages, for instance, typically make-up for the biggest chunk of a business’s expenses. Research indicates that wages account for 19.4% of a small business budget. Inventory and rent are the second and third largest business expenses, accounting for 7.7% and 4.6% respectively. Businesses also have to spend money on acquiring new customers. In fact, 44.6% of small businesses plan to invest in new customer acquisition to help grow their business.
Working capital business loans can help you achieve your new product launch or new start-up company, while still meeting the other budget requirements of your current company.