The current economic climate is becoming increasingly challenging for small business owners as they struggle to obtain the financing they require to grow and expand their businesses.

Recent economic data has indicated a slowdown in the economy, with GDP growth rates in the U.S. slipping from a high of 3.4% in mid-2018 to a mere 2.1% in the second quarter of 2019. This has led to a high probability of a recession in the near future, with experts predicting that it may occur as early as 2020.

Small business owners are feeling the effects of this uncertainty, with many struggling to secure business loans from traditional lenders. Banks and other financial institutions are now implementing stricter lending criteria and are hesitant to take on additional risk, leaving many small businesses in a tight spot.

Now is the time for businesses to look for alternative financing options, such as working capital loans. These loans can provide businesses with short-term funding to cover their operating expenses, payroll, and other essential costs, enabling them to stay afloat during difficult economic times.

Businesses can also consider invoice financing, which allows them to convert their outstanding invoices into immediate cash. This can be a particularly attractive option for companies with longer payment terms, as it enables them to access their cash flow more quickly.

A recession is imminent. Is your business well-capitalized and ready?

In conclusion, the current economic environment is proving particularly challenging for small business owners who are struggling to secure financing. By considering alternative options such as working capital loans now and invoice financing, businesses can ensure that they have the necessary cash flow to survive during difficult economic times and potentially thrive when the economy recovers.

Click here to find out more about our business line of credit and working capital loans.