Numerous business and financial website publications forecast that business optimization is on the rise for 2014. If you manage a small or mid-sized business, things are looking up for you this year. The state of the US economy is improving through expansion and the unemployment rate continues to decline. In the 4th quarter of 2013, the US Labor Department reported that more jobs were created in the economy since the initial decline, decreasing the unemployment rate to an all-time low of 7 percent. This, combined with consumer earnings, factory spending and international trade, is working together to inspire warranted optimism in business owners regarding overall economic growth.
Small Business Confidence by the Bulk Following are results of a small business survey1 conducted by a leading independent financing company -- showing business confidence is on the rise.
- 72% of small business owners feel the US economy is improving; 43% are extremely confident about the economy
- 39% of small business owners are seeing increased revenues this year
- The most common investment goals among small business owners include business expansion (34%), marketing (21%), increasing staff (20%) and purchasing equipment (13%)
- 31% of small businesses financed capital equipment this year
Financing Trends for 2014
Business owners are often in need of capital and may have difficulty getting approved for a traditional bank loan. They may need to purchase new or used equipment in order to meet consumer demands and increase business opportunity. There are many other quick and easy ways to get financing for businesses without having to go through a lengthy application and credit approval process. Consider these financing options to manage your business' finances for 2014:
- Unsecured Loan -- To attain this type of loan there are zero assets required, and the borrower may select a flexible payment plan. Business owners seek this type of loan for its easy application and relatively quick approval and funding processes.
- Working Capital Loan -- This is a short-term cash loan that many companies and business owners are eligible for because a near-perfect credit rating and extensive collateral are not required. Due to the attainability and flexibility of working capital loans, many business owners acquire them for equipment, employee salaries, advertising and a wide variety of other business needs.
- Business Cash Advance -- Also known as a merchant cash advance, this financing option gives businesses access to the cash they need to cover a whole host of business expenses. They make payments on this loan through a fixed percentage of future credit card sales. Most cash advance loans offer a daily payment schedule that can be structured around a company's individual requirements, making it a manageable option for many business owners.
- Equipment Leasing -- This is a great way to attain equipment and technology for a business without using up a business credit line or working capital, both of which are needed elsewhere, or during an unexpected slow sales period. Leasing allows companies to get the equipment they need quickly, and with a manageable monthly payment.
Related: Get your finances in order this year with accounting software.
This article was written exclusively for Business.com by small business loan provider Balboa Capital. 1.Business confidence statistics are based on the results of a nationwide survey that Balboa Capital sent to more than 150,000 business owners in late 2013.
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