Small business owners often face challenges that larger business owners don’t have to deal with. According to Nerd Wallet, when it comes to having their financial needs met, only 48% of the small business owners polled responded affirmatively. Fortunately, business loans in Michigan are available to owners and operators of small businesses through the Small Business Administration (SBA). Let’s take a closer look at a few of the challenges facing this group.
Cash Flow Variances
Small businesses often operate in niche areas of the market. This can mean that as they’re growing and stabilizing, cash flow can vary significantly from month to month. Not knowing how much revenue you’ll bring in next month can make it difficult to manage any business. Small business loans in Michigan can help you smooth out these wild variances and keep your cash flow better regulated. This will allow you to pay bills on time, manage inventory, and meet payroll obligations each month, even when there are issues with cash flow.
Even when sales are steady and business is good, revenue can still be uneven due to payment delays and other similar issues. Seasonality can also have a significant effect on your revenue. Similar to cash flow issues, revenue unevenness can make it difficult to plan for the future while also meeting current obligations. As a small business ramps up, there will be periods of feast and famine. Without adequate resources available, keeping the business running will become more challenging month after month.
Access to capital is another area that’s challenging for small business owners. For many owners, the capital that’s available to them is too expensive to even consider. Luckily, there are several resources for reasonable capital access through the SBA. Finding an approved lending partner is an effective way to access necessary capital without creating a debt situation that soon becomes untenable. Now is an ideal time to learn more about the lending programs that are available through the SBA and its partners. These programs are designed to meet small businesses’ unique needs.
We provide business loans in Michigan to the small business community. If you’re looking for an SBA lending partner, contact us today at MCDC, Michigan’s #1 SBA lending partner. Our team understands the unique challenges that small business owners face here in Michigan, and we’re here to help!