The recession has left many entrepreneurs wondering how small business financing will be affected. Discover Card Financial Services has identified one interesting change.
The research done showed what small business financing looked like prior to and since the recession. Fortunately the findings have been in favor of small businesses. The research explained that the financing did not change much between 2007 and 2009. During this time there was equal distribution of business owners who used a variation of personal savings, credit cards and bank loans. Also, the Obama administration increased SBA funding by an additional $15 billion for small businesses in 2009.
There was a change in whether or not founders of small businesses needed external financing to start their businesses. The report also surprisingly showed that business owners in 2009 used more personal investments and less outside financing than those in 2007.
Academics attribute this phenomenon to the fact that when recessions hit, business owners tend to change their business models so that they can rely less on external financing. This allows them to persist in their entrepreneurial efforts despite the tighter credit conditions.
If credit is still difficult to obtain, C&C Capital Lending offers unsecured lines of credit to either get your business off the ground.
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