Survey: Small businesses struggling for loans

11/17/2011

A recent quarterly survey from Business Monitor revealed some small companies are beginning to place the blame for low small business lending on the bleak economic landscape, Management Today reports.

The poor economy resulted in many companies becoming reluctant to borrow, as just 2 percent of small businesses reported looking for credit during the quarterly time period. Furthermore, approximately 54,000 businesses had their loan applications denied while at least 150,000 declined to ask for a small business loan.

While the survey paints a grim picture, Small Business Resource points out that a poor economy shouldn't discourage a person from starting a small business - provided he or she go about it the right way.

The media outlet suggest this means finding a niche - such as improving upon a product or service people feel they already need or creating something new they didn't know they wanted. A top-notch business plan is also necessary, as is doing homework about banks that have a good track record of supplying loans to startups.

Furthermore, starting out online instead of at a brick-and-mortar location is a great way to lower overhead, while entrepreneurs may be able to obtain workers and supplies for less money because of the down economy, using it to their advantage.