Forty-three percent(43%) of small business owners could not obtain needed funds during the last four years——no loans, no credit cards , no investors. One-third had their existing credit lines slashed and one in ten had their loans called in early. Unable to find funding, one-third reduced their number of employees , while twenty percent(20%) reduced employee benefits. These are a few findings from the National Small Business Association’s 2012 Small Business Access to Capital Survey.
Cash flow problems do not just stem from difficulties in finding outside financing.. Many small businesses are feeling the pinch when it comes to client payments. Twenty-one percent(21%) of the survey’s respondents reported longer payment times. Today, 29% report payment terms of net 60 to 90 days—- up from 6%.
Despite the current situation they may be a light at the end of the tunnel——namely the recently passed JOBS Act and the easing of restrictions concerning crowdfunding. Nineteen percent(19%) anticipate seeking investors through crowdfunding.