Small businesses fuel the job market across the United States. Thanks in part to small business growth, unemployment is currently showing very low rates. According to the National Federation of Independent Business (NFIB), more businesses are considering increasing their hiring, and increasing inventory. One of the challenges these businesses will face however is making sure their cash flow allows them to keep up with the need to invest in higher employment and inventory. Increased Business Means Need for Increased CapitalOne challenge faced by most business owners is the need to have capital on hand to increase their business. Businesses will find it impossible to increase inventories if they do not have the raw material available to do so, and hiring good labor requires an investment which may not produce immediate returns. This means more businesses than ever before need access to reliable sources of capital. Despite the higher optimism index, and the fact banks are seeing more applications for loans than they have since the 2008 recession, the statistics on loan approval are dismal. Here’s a look at what is happening in the banking sector as far as loan approvals:
These numbers are not good for small businesses because they reflect one very important fact: Small businesses still face hurdles when it comes to securing much-needed financing for their activities, and particularly when it comes to continuing to take the lead in job creation. Contracts, Agreements to Purchase, and InvoicesThere is an irony to a business owner not being able to secure financing when they have contracts to deliver product, agreements for future product purchases, and have issued invoices which are currently unpaid, when they need capital. Most banks, credit unions, and other financial institutions do not see any value in these commitments and therefore they tend to discount them. This is not the case at Capstone Capital Group — we understand the needs of business owners to secure capital and we can help them make the most of their accounts receivables, import and export agreements and contracts by providing financing, and helping with letters of credit and logistics. Thanks to a unique approach to financing, we have been able to help small and medium sized businesses take advantage of new opportunities to grow their business by developing a funding plan that meets their needs. Whether you are a small or mid-sized business owner, or you are a broker who has financing clients who do not fit into the mold traditional lenders are willing to work with, contact us today and let us help. You can reach one of our professional representatives by contacting us by phone at 347-410-9894 or by Email at [email protected]. The post Business Optimism Index Increases Demand for Financing appeared first on Capstone. via Blogger Business Optimism Index Increases Demand for Financing
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Capstone Capital Group, LLC
Capstone seeks to fund under-capitalized, competent businesses to sustain sales growth, preserve capital and ensure business goals are realized. |