2020 SMALL BUSINESS REPORT
Bibby Financial Services Global Monitor 2019 is a terrific snapshot of the state of small business and the excellent prospects for next year.
Copy and Paste this Link for this Great Report: https://bit.ly/34nc5Ew
Here’s a summary of the highlights.
Just over 1 in 10 (15%) SMBs are expecting to apply for external finance in the next 12 months.
SMBs interested in starting to export require funding (43%) and help to connect with potential customers (38%) to get started.
Cash flow is the top challenge for business now and over the next year.
The vast majority (92%) of American SMBs surveyed plan to invest in their businesses in 2019.
ROADBLOCKS STOPPING BUSINESSES FROM EXPORTING
37% of American SMBs who are interested in getting started in exporting rate funding support as their #1 problem.
ACCESS TO FINANCE 1 in 3 (34%) of SMBs currently use external finance and another 15 per cent expect to apply within the next 12 months.
AVAILABILITY OF FINANCE Access to finance has gotten slightly tougher in the last two years with 19% currently rating availability as poor vs only 12% in 2017. The proportion of respondents who have been rejected for external finance also increased to 25% in 2019, from 10% in 2017.
SMBs state poor credit history as the main reason lenders rejected their applications for funding.
PAYMENT PRACTICES Late payment is a universal issue impacting businesses across the world and U.S. SMBs are not spared. 1 in 3 (31%) of SMBs indicated it takes over 30 days before getting paid and 30% reported suffering a bad debt in the last 12 months from which they could not recover.
THE AVERAGE AMOUNT LOST IN BAD DEBT was $114,268.
So what does this all mean?
The small business outlook for 2020 is outstanding.
The number one need for small business is funding!
Banks continue to disappoint SMBs which is why alternative lending is so helpful.
Poor credit is the major problem for SMB so our range of products is incredibly powerful.
Receivables and bad debts are huge issues so invoice factoring is a great product.