Small Business Loans May Help Companies Survive During Inflationary Period
According to the U.S. Chamber of Commerce, Studies show that almost 50% of small business owners will have no choice other than to take out a small business loan and raise prices to keep up with inflation. According to the SBA, 29.3% of businesses have sought an EIDL loan since May 2020. Another staggering 32% plan on doing so in the future.
History has shown that small businesses have previously leaned on borrowing from friends and family and credit cards to get by in times of economic stress. With inflation impacting these friends and families and credit card debts soaring after the pandemic, small businesses are now turning to business loans to stay afloat.
Is a small business loan a good idea?
At the pandemic's peak, the United States Federal Government passed the Paycheck Protection Program (PPP), offering 6 million small businesses aid. In addition to PPP, EIDL loans skyrocketed during these trying times. An EIDL loan provided funding to small companies affected by the impact of COVID-19.
Will all these businesses survive?
In theory, starting a business should ideally not be done on a whim. Business owners offer goods and services of which they feel pride and passion for enhancing the help of their fellow man/woman and the overall economy. The pandemic threatened several business owners' dreams and the very essence, some of whom worked many years to build up clientele providing goods or services. If a business owner still holds onto that passion, a loan can help businesses stay afloat during these trying times. If a business owner had previous success pre-covid or believed strongly in the goods and services provided, following their dreams with a loan may be necessary to continue business in 2022.
With no current federal or state government assistance available, business owners will have to make a tough decision in determining the means to stay afloat. Deciding whether a loan is worth pursuing will likely determine a business's survival.
What are business loan options?
With banks' lending at a premium and approving loans based on credit score and incoming revenue, lending brokers such as Shore Funding offer funding options for businesses that may not want to, nor do not have to, flexibility options of applying for a loan through a bank.
Business Line of Credit
Our Business Line of Credit allows you to draw down any amount at any time, as long as it does not surpass the maximum approved amount.
Business Term Loan
Our Business Term Loan enables you to request from $10,000 to $1,000,000, with flexible repayment terms.
Working Capital Loan
Our Working Capital Loan makes sure your business has the tools and equipment needed to generate, sustain, and grow revenue.
