Profit Minded

Only 23% of small businesses that need capital get it

This infographic from OnDeck Main has some really fascinating information in it. Although it has an obvious bias toward capital and financial needs, there is some really solid value for a small business owner here. For example - the number in the headline - only 34% of small businesses that need capital get it. How does that come about? Well, only 55% of businesses applied to get capital from some source (15% didn't need any and 30% didn't even try although they needed it). That's already a pretty low percentage, but the next number shows why 30% of small businesses don't even bother to apply for financing. That number is 36% - the number of small businesses that apply for financing that actually get it.

Some other numbers that show why this is so hard - of those that applied, 83% were denied by their bank - 82%! Some (18%) clearly find financing another way (most likely friends and family financing).

The only thing I disagree with is that the infographic states that of the people they talked to financing was the biggest problem over finding customers. Our experience is that finding customers is categorically the number one problem for small businesses. But that minor quibble aside the rest of the information is really interesting. Take a look.


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