Business owners showed resilience during Covid-19. Now with the imminent recession, they will once again have to show their resilience. The ability to accessing working capital has never been more imminent.
Nearly two years post Covid, small business owners are now accustomed to a new business environment, but most experts predict that a period of stagflation and recession may continue, and the pain could extend far into 2023. Nothing new here as small businesses for the most part have been dealing with uncertainty since Covid lockdowns in 2020. With challenges finding employees post pandemic in 2021 and 2022, continuing supply chain issues, increased costs of everything, business owners who were still in business entering the year of 2022 had the cards stacked against them. 2022 was most notably defined by record high inflation, in effect making goods more expensive. With the lower purchasing power of the dollar, ‘less for more’ is now the ‘new normal’ that small businesses (and consumers) will deal with for a while.
As record high inflation was becoming apparent (for most), small business owners had to react to higher than normal COGS. What would have been considered margin losses were transferred to consumers by raising prices, to protect business profits. However, this doesn't mean that small businesses remain unaffected by the inflation spike. Higher costs are everywhere and on everything, including operational expenses to run your business. This coupled with potentially lower consumer confidence means businesses are looking for volume, repeat customers.
The average mortgage rate for a 30-year fixed is 6.37%, more than double its 3.22% level at the start of 2022. Potential buyers have been pushed out of the affordability spectrum as interest rates continue to soar. Inflation, recession and higher rates make for a ‘buyer’s market,’ especially with a large inventory of available homes. Mortgage companies are pulling back on expected fundings as the housing market softens.
Banks are outspoken in their predictions of an unshakable recession. Factually, the US has been in a recession for the last 3 quarters of 2022.
As Covid-19 began to sweep the nation’s business owners, it became clear that businesses were going to borrow money to survive. A lot of businesses could not operate due to limited funds. American businesses had maybe a couple weeks of cash reserves available to operate and sustain their business. Coupled with much lower-than-expected customers, the access to capital became more important than ever.
While Covid-19 was not an optimal time for business owners, innovation, growth, and American values kept the economy going. With the incoming recession, again business owners are anticipating less customers, consumers or businesses to pay your costs while having to maintain costs such as rent, staff, and inventory. Without relying 100% on money coming in, the ability to borrow money once again will determine if your business will survive or not.
We are seeing unprecedented applications for credit, so we urge business owners who are seeking a quote to apply first, so they can then talk about the real options available to them…all with the trusted guidance from a dedicated loan officer and underwriting team.
US Capital Source makes the application process seamless and available to every Business owner.
Submit all the necessary information to a number of potential lenders in one place! We eliminate the need to fill out multiple applications and allow you to compareloan options from different lenders. Reduce the risk of errors and time to secure a loan, as all the necessary information is collected in one application.
By submitting all the required information in one place, businesses can speed up the loan application process and receive a loan decision much faster so you can start to grow your business, more quickly.
Interest rates and repayment timeline tailored to your chosen offer. Help finance the expansion of your business.
With relationships across the country, US Credit Source is able to provide quick Lines of Credit less than two points above WSP Prime
Access working capital quick and on short-terms so you can pay back your financing sooner. Use what you need, when you need it. US Credit Source has various options for all Business Owners
Upgrade your Business with financing for Business Equipment. Equipment keeps the busy running and US Credit Source has access to fast capital for all your equipment financing needs
Receive invoice factoring and provide your business with a source of working capital to fund operations and growth.
A Government Grant program under the CARES Act. US Credit Source has helped thousands of Business Owners receive employee tax credit from 2020 and 2021