Karen Mills, the former Small Business Administrator, has recently published a series of working papers in her role as Senior Fellow for the Harvard Business School, which analyzes the current state of bank-backed capital available to small businesses.
She states that while small businesses:
• Create two out of three new jobs
• Employ half of the private sector workforce (and)
• Are responsible for 65% of new job creation,
that insufficient funding is a problem that plagues small businesses viability and growth.
The primary reason that the economy hasn’t fully recovered is because businesses are not creating jobs at the rate that is needed.
Job creation requires capital and when availability to those resources are non-existent, the entire economy feels the effect. In a survey conducted by the Federal Reserve Bank of New York in 2013 it was noted that most business owners cite access to capital as a top growth concern. As a result, small business loans are down 20% since 2008.
Federal Reserve research finds that small-business borrowers can spend almost 25 hours on paperwork for bank loans, and often apply to multiple banks. Successful applicants wait weeks or, in some cases, a month or more for the funds to actually be approved and made available. Some banks are even refusing to lend to businesses within particular industries or below revenue thresholds of $2 million.
Due to the slow recovery of our banks, small businesses need to find alternative sources of capital, which is where Universal Funding can quickly create necessary cash flow for these small businesses.
Universal Funding, a prominent factoring company, understands the importance that a business owners’ time is best spent running their business, and ensuring capital is available. Invoice factoring plays a key role in assisting business owners with those duties, and Universal Funding’s application and approval process can be determined in a matter of days.
If your business has experienced the downfalls of traditional lending, please give us a call at 800-405-6035 for a financing solution today.