You Tube

Skip Navigation LinksHome > Industry News
SHARE & BOOKMARK
FaceBook Twitter Delicious Digg LinkedIn

Study: Small Businesses Reluctant To Take On Debt

(8/5/2014)

While it’s becoming easier to obtain small-business loans, many owners are refraining from pursuing the funding, according to a just-released survey. The study from Sageworks, a financial information company, shows 77% of small-business owners have never applied for a loan.

The main reason for this – cited by 62% of respondents – is a reluctance to shoulder debt. Sageworks Chairman Brian Hamilton said such caution about pursuing capital and incurring debt is a good sign. "Taking on too much debt can be harmful to a business," Hamilton says. "Management starts worrying about how to pay back the loans, rather than how to really scale the business."

Beyond wanting to avoid debt, another 24% of small-business owners said they have not applied for loans because they felt they would not be approved, the survey found. Additionally, 12% said the cost of credit was prohibitive, while others indicated the loan process was too time-consuming to be worth it.

When it came to financing their operations, nearly 60% of survey respondents said they used personal savings to start their business. Another 30% didn't need funding and 10.5% received capital from friends or family, the survey found. Meanwhile, a little more than 19% of those surveyed relied on a loan or credit line.



Sponsored By:

Making You Money: What ASI is all about.

Promotional products, also known as ad specialties, make up a $20.5 billion dollar industry and are used by virtually every business in America. Why? Items like mugs, pens and t-shirts are memorable and provide a better cost per impression for advertisers than almost every major marketing effort like prime time TV, magazines and radio.

With so many businesses buying ad specialties there is a huge opportunity for professionals looking to make great money running a promotional products distributorship. It’s easy and inexpensive to get started and you can work from home.

© 2014, The Advertising Specialty Institute®. All Rights Reserved.

  • A business opportunity to reinvent your career in an exciting field
  • Work at home - for yourself - not by yourself
  • Make money selling ad specialties
  • Partner with a time-tested industry leader
  • Get started instantly with all the tools you need