small-business-in-america

Small business in the United States increased their borrowing in November 2013 by 1percent. While 1 percent doesn’t seem like a lot, consider all of the small businesses in the United States. Small businesses make up nearly 60% of all employment. This increase in borrowing helps confirm that the economy is steadily rolling upward. This also shows that it is a great time to get a small business loan.

Whether you are obtaining your first small business loan, or are taking out additional funding, you must consider all options. Banks are the standard for small business loans, but have rigid regulations for businesses that borrow. Private lenders are a good choice for some, but they require some sort of collateral. The Small Business Administration offers government loans to small businesses, but some people do not want to take a loan from the government. Regardless of the method you choose, you need to thoroughly research each option.

While borrowing was up for November, delinquent payments also rose to 1.45 percent. This could simply be because November only had 20 working days, due to weekends and holidays. However, this is a number that needs to be watched by those who wish to take out small business loans, because higher delinquent payments can not only impact the delinquent payer, but those who wish to take out loans, as well by driving up interest rates.

The borrowing increase in December could have been as simple as businesses needing new stock for the holidays, or needing new equipment for the New Year. Regardless of the reason, the simple fact that the borrowing increased is a positive sign for the United States economy. When small business owners invest money into their business, or take out new loans, they are expecting an influx of people to purchase their new inventory, or draw people in with their new displays. This is a great time to borrow, not only for the low interest rates, but also because it is always great to open right when people are beginning to spend again. People love to support local, homegrown businesses, and locals will surely love to support your new endeavor.

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