Hey Sellers,
We’re trying out a new type of QOTW this week: In the News!
This week I ran across this super interesting article about big drops in loan availability across the board, which seems to be affecting small business owners the most. I’d love to hear if you’ve felt it in your business.
US News & World Report: Small Business Owners Feel the Credit Crunch
The article explains how small businesses have been struggling with loans due to a consistent increase in interest rates, making it harder for businesses to pay back. With banks less likely to offer loans, the article shares that approvals have been dropping every month for over 9 months, and down about 50%. They share the example of a pretty successful long-time business getting rejected for a $50,000 loan, despite a history of profit.
Overall it seems like right now it’s a really difficult prospect for business owners who are in a pinch and need some financial infusion.
When I owned my ice cream shop, we didn’t even really try to get loans from a traditional bank. It all seemed too complex and complicated, and we didn’t think we would be approved based on our history. We put a lot on credit cards and dealt with the fees. Towards the end, we did take a few Square Loans which were essential in keeping us afloat through the winters, especially around the pandemic.
I’d love to hear your perspective on this:
- If you’ve applied for a bank’s business loan recently, how did it go?
- Are you worried about being able to get funding in the future?
Can’t wait to hear your thoughts!
Pesso
