Startups Still Struggle to Find Business Funding

One of the major reasons that startups fail is because they ran out of cash. It’s critical for business owners to understand all issues concerning their own funds and business financing. Even though startups may face financial hardships, with the right steps, they can take their business off the ground and reach success.

 

About 8 out of 10 entrepreneurs fail within the first 16-18 months of starting their venture. This represents 80% of all startups that crash. The main reason has to do with the lack of cash. Only about 30% of all small businesses can break even while another 30% eventually lose money almost continually.

 

20% of businesses run out of cash before being able to get fully established. 64% of small business owners start with $10.000 or less. 75% of small business ownersreport they’ve used their own personal finances as primary startup funding. Banks (16%) and family/friends (6%) are mentioned among other funding options.

 

As of 2016, startups in the industries like Finance Insurance & Real Estate, Education & Health, Agriculture, Services, and Wholesale were the most likely to last 4 years or more:

 

A recent study shows that 69% of startups have applied for this or that type of financing and received less than they requested. 28%weren’t able to borrow anything. Only 31% of borrowers were able to obtain the full amount they tried to get underwritten.

 

According to Linda McMahon, head of the Small Business Administration, it’s extremely challenging to obtain funding and get loans when you don’t have any collateral except your own cash flow. McMahon has further added she knows that there are many startups that have those kinds of problems in getting capital.

 

As Claire Kramer Mills, an assistant vice president at the Federal Reserve Bank of New York, notes, there’s a difference between traditionalproviders and online providers in terms of making timely decisions: online lenders are rated much better on that dimension.

 

With a reputable business funding provider, startup owners can get access to working capital with the best possible rates and terms. Even low credit scores, bad or no credit history, and bankruptcies can’t be a problem for the true professionals in the field. With a respectable alternative online lender that specializes in the high risk sector, you can get approved for startup business funding bad credit without challenges.

 

Business Funding expert, Nathan Hale, founded First American Merchant with his eyes set on helping the backbone of our country, small business owners. His passions include writing/producing music, and travel. First American Merchant is America’s Best startup business funding bad creditcompany, serving both traditional and high-risk Businesses.

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