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Small Business Financing Trends to Watch

Updated Jul 24, 2023

Table of Contents

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  • Small business owners survived a pandemic and uncertainty and now face high inflation and talk of a recession.
  • Small businesses must also grapple with high interest rates that have risen sharply.
  • Technology continues to play a crucial role in helping small business owners manage cash flow.
  • This article is for business owners seeking insight into current small business financing trends.

It’s been a rough few years for small businesses. Surviving companies adapted, stayed persistent and were willing to look for help when needed. With the worst of the pandemic and related restrictions in the past, we’re seeing high demand for goods and services. However, this demand has been so high that suppliers find it challenging to keep up, and inflation hit 8.5 percent in 2022 – its highest level since 1982. 

High demand is great for small businesses – if they have the capital to hire enough people and procure supplies to satisfy customer demand. We’ll examine the current state of small business financing to give SMBs a clearer outlook. 

Editor’s note: Need a loan for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.

Small businesses should prepare for financing challenges

The economy is already experiencing inflation and supply chain disruptions. Energy prices are through the roof, and people are arguing about whether we’re already in a recession. Real estate sales are slowing, primarily due to high interest rates and buyers wondering what will happen next.

High interest rates and potentially lower real estate equity may reduce access to capital for some small businesses. It’s essential to find alternate funding sources or adjust capital needs before you need them.

Small businesses should prepare for financing challenges. The post-COVID-19 economy has taken off, but not in a smooth or predictable fashion. “Things will be difficult,” Gillman noted. However, there’s no need for panic. “When there’s challenges, it creates opportunities,” said Gillman. “The hard part is answering the question of what that opportunity is.”

Sally Herigstad
Sally Herigstad
Staff Writer at
Sally Herigstad has been a personal finance writer, author, and columnist since 1998. She is the author of Help! I Can’t Pay My Bills: Surviving a Financial Crisis (St. Martin’s Griffin) and is a retired certified public accountant.
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