Business Owners Optimistic, But Still Hesitant To Expand The National Federation of Independent Business released its monthly Small Business Optimism Index on Tuesday. The index rose to 92.9 during August, up 1.7 points from a 9-month low of 91.2 July. Despite slow job growth and uncertainty about the upcoming presidential election, small business hiring and spending variables improved, and more business owners reported plans to hire new employees. Demand for small business loans remains weak, with the NFIB reporting that “record levels of owners [express] no interest in a loan to finance new projects or hiring.” The frequency of capital expenditures reported during the past 6 months also increased slightly. 41 percent of business owners who made capital expenditures reported using funds to purchase new equipment, 21 percent purchased vehicles, and 14 percent reported expenditures on new or existing facilities. Consumer spending  slowed during the summer, pushing sales figures down significantly. 20 percent of small business owners report that weak sales are their greatest problem.

Horizon Provided a Record $4.1 Million in Financing Last Month Horizon Business Funding is proud to announce that we provided over $4 million in small business financing during the month of August! Our merchant cash advance program helped dozens of small business owners get capital to help pay for operating costs, hire new employees, finance and repair equipment, and more. Business owners from a wide range of industries are putting our cash advance funding to work for them. During August, Horizon funded commercial construction firms, medical practices, dental practices, auto repair shops and more. Even as national economic data shows that small business lending continues to stagnate, Horizon Business Funding is helping entrepreneurs access more capital than ever. To learn more about how our business cash advance program works, or to apply for business financing, visit our website.

Small Business Owners Struggle With Cash Flow Despite Increased Lending The Thomson Reuters/PayNet Small Business Lending Index rose 3 percent to 103.8 from 100.5 during July. The index had fallen during 5 of the previous 6 months. Despite this modest increase in the overall volume of small business loans, other metrics show that business owners who have received financing continue to struggle with cash flow issues. The number of delinquent accounts with loan payments at least 30 days overdue grew from 0.04 percent to 1.4 percent during July. While business growth remains tenuous across all industries, The Institute for Supply Management reports that activity in the manufacturing sector declined for its third straight month in August. Uncertainty about economic growth and the upcoming presidential election have prompted business owners to borrow less.

Trucking Professionals Struggle to Maintain Their Fleets On August 6th, the Equipment Leasing and Finance Association released its 2012 Survey of Equipment Finance Activity. The survey showed that trucking equipment financing accounted for just 4.8 percent of overall equipment financing. In 2010, the trucking industry accounted for 10.4 percent of equipment financing. While fewer trucking professionals received equipment financing, 11.6 percent of those who received equipment financing used their funds to purchase trucks and trailers. Read the ELFA’s full report on truck and trailer financing trends. As transportation professionals face rising fuel costs and struggle to comply with environmental regulations, equipment leasing has fallen along with financing for those leases. If you need extra working capital to update or expand your trucking fleet, a trucking financing loan from Horizon Business Funding can help. Learn more about trucking financing .

Banks Issued Fewer Small Business Loans Last Year Recent reports by the Federal Reserve Bank of New York and the Small Business Adminstration show that small business lending has fallen significantly from 2011-2012. The number of business loans under $1,000,000 has dropped by 5% during the past year, SBA reports.  In a recent poll of small business owners conducted by the Federal Reserve, 60% of respondents reported that they did not apply for loans at all due to a lack of confidence. Many firms that were unable to obtain credit cited “issues such as insufficient collateral or low credit scores,” The Wall Street Journal reported. Read the full Federal Reserve Small Business Borrowers Poll. Alternative Financing Sources Help Business Owners Secure Working Capital While it is true that banks and traditional lenders are reluctant to grant loans to small businesses, especially if the business owners have a poor credit standing, there are alternative funding sources available to entrepreneurs who have had difficulty securing funding. Business cash

TOP css.php