In its 2024 Business Owner Report, Bank of America Institute indicates that most small business owners are cautious, yet optimistic, about the road ahead. Economic confidence has remained consistent since spring 2023, and entrepreneurs are keeping a close eye on inflation, the current U.S. political climate, and the 2024 presidential election. Despite political uncertainty, “65% of business owners anticipate an increase in revenue over the next 12 months.”
When it comes to funding their operations, 71% of small business owners plan to obtain additional financing for their business. The top funding choices indicated among respondents included:
- 61% – Business Credit Cards
- 45% – Personal Savings
- 28% – Personal Credit Cards
- 25% – Traditional Bank Loans
As a specialist in supporting small businesses, Stone Bank is no stranger to the variety of considerations owners weigh when it comes to financing their operations. While a short approval time and flexibility for daily use work to their benefit, the higher interest rates and lower credit limits associated with credit cards make them a “less-than-ideal” solution for significant business investments. Additionally, though using personal savings affords you easy access and full control over how you choose to spend the money, this funding method carries a limit as to what you can afford and can pose a significant risk to your household finances.
For small businesses mapping out their road to success, government-guaranteed loans are a funding source that offers lower interest rates, longer repayment terms, and improved cash flow. Acquiring funds through an SBA loan may take more time and effort during the application process, but it isn’t as difficult as it seems. Stone Bank is a Preferred Lending Partner with the U.S. Small Business Administration, which means we’re able to assist you with the application process in less time (and with fewer headaches) than many other financial institutions.
If growth and expansion are on the horizon for your small business, Stone Bank can help. Our team of small business specialists has the knowledge and experience necessary to provide you with insight and recommendations tailored to your business needs.
SOURCE: 2024 Business Owner Report – Bank of America Institute (PDF)
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