Critical Small Business Financing Issues
A recent Harris Poll survey conducted on behalf of Lending Club revealed that 44% of small business owners can’t get the financing they need. If they could get financing, 55% of owners said they would hire at least one more person for their business.
The study findings highlight the stress that running a small business places on their owners. Among the personal health issues reported by small business owners include having trouble with relationships, losing sleep, and having feelings of depression. Along with the health and relationship issues 53% of small business owners report putting their personal financial health at risk.
One of the solutions for reducing the stress on small business owners is having access to small business financing with transparent interest rates. 77% of small business owners reported that an affordable interest rate is the most important factor when choosing a loan, yet 93% underestimated the actual interest rate they would pay on a loan.
Sources: The Lending Club State of Small Business Financing Survey was conducted online by Harris Poll on behalf of Lending Club from April 8, 2015 to April 15, 2015 among 505 U.S. small business owners who reported they are ages 18 or older, have been in business at least one year, and had annual business revenue in 2014 between $50,000 and $10M. Results were weighed where necessary to align them with their actual proportions to the U.S. population of small business.
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