Running a business is tough work. It requires constant movement of resources, funds, people, tasks, and so much more. It can also be quite costly, even for the most careful financial planner. Unexpected expenses often arise, and especially for a small business, this can put a dent in the efficiency, movement, and progress of the company. Working capital loans for small businesses are a good option for extra funding in the day-to-day proceedings of a company. These loans can be applied to any number of aspects of the business.
What can working capital loans for small businesses cover?
Funding experts can tell you that the biggest slice of a company’s expenses is typically what is spend on employee wages, and that is somewhere around 19.4% of what a company spends. The next significant expense is inventory, which accounts for about 7.7% of expenses, and another 4.6% goes to rent, vital in ensuring a good work space. Working capital loans for small businesses can help with these costs as well as with the daily spending and unexpected incidents that add up.
The success of small businesses
While many small businesses do struggle in the shadow of large corporations, small business lending can come to their aid, and allow the small businesses to boom. And overall they do seem to be doing quite well. In 1996, Baby Boomers starting small businesses accounted for 14.3% of entrepreneurs. That number was up to 23.4% and still climbing in 2013. There are 28 million small businesses in the United States, and these contribute to 54% of all sales in the country, as well as provide 55% of all the jobs across America. In terms of physical space, American small businesses take up 30% to 50% of all the used commercial space, which comes out to around 20 to 34 billion square feet.
Spending and saving in a small business
Small business loans are vital in helping a small business get on its feet and stay there. But there are other ways to save money and in turn save the company. There are seemingly endless expenses in starting and running a business, but many of those costs can be tax deductible, particularly in the first year of being in business. Things that can be deducted on the company’s taxes include fixed assets such as land, cars, furniture, and buildings, as well as office equipment like computers, phone systems, copiers and fax machines.
The small business sector is one worth watching out for. Small businesses offer a connection that many massive corporations cannot, and they are the American dream in action.