March 2023 Industry News and Trends
The shocking collapse of Silicon Valley Bank (SVB) highlighted the importance for small businesses of choosing the right banking partner. But what do business owners need to consider when making that choice?
This article on CNBC provides insight into the causes of the SVB failure and its potential impact on the banking industry along with tips to help small businesses make more informed decisions about where and how to keep their money safe in a volatile economy.
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You may also consider applying for a corporate credit card solely for the purpose of establishing your responsible use of another form of credit. However, only do this if you’re confident that you have the discipline to pay off the balance, in full, month after month. Any activity that demonstrates that you can borrow responsibly against a credit facility, whether it’s a credit card, bank loan or trade credit, will enhance your credit-worthiness and access to additional credit.
A recent survey released by 12 Federal Reserve Banks takes the pulse of small business across the U.S. Results from nearly 8,000 small businesses with 1-499 employees and $100K to $10M in annual revenue found that while more small-business owners reported higher revenue and employment growth in 2022 than in 2021, fewer are anticipating growth in the future.
The survey also found widespread challenges related to operations and finances, with 94% of small businesses experiencing a financial challenge in the year prior to the survey.
The percentage of companies applying for traditional loans, lines of credit, or merchant cash advances increased from 25% to 40% between 2021 and 2022.