Capital refers to the financial resources, such as money or assets, that businesses need to start, run, grow, or make investments. It is necessary to fund various expenses, including but not limited to, inventory, equipment, employee salaries, marketing, research and development, and other operating costs. Access to capital can take different forms and can be a complex process for businesses to navigate.
Small businesses are the backbone of the economy, driving innovation, creating jobs, and fostering economic growth. However, accessing sufficient capital remains a persistent challenge for many small business owners. According to a study from Kauffman Foundation, 83% of entrepreneurs face challenges in accessing the capital market when starting their businesses. This has often led entrepreneurs to use their savings or investments from family members to get their ventures up and running.
Capital plays a significant role in the early years of new businesses. Data from firms in their fourth year of existence shows that the importance of external debt financing rises as new businesses grow.²0 An examination of young firms participating in accelerators, which provide financial and non-financial support, found that two years after raising capital, funded companies achieved 30 percent more growth in revenue and 50 percent more growth in employment than companies that did not raise funding. Furthermore, consumer credit access is shown to matter at each stage of new business development.
~ Ewing Marion Kauffman Foundation: Hwang, V., Desai, S., and Baird, R. (2019) “Access to Capital for Entrepreneurs: Removing Barriers,” Ewing Marion Kauffman Foundation: Kansas City.
Additionally, according to a small business majority survey, a significant majority (66%) of small businesses expressed worries regarding the recent closures of banks. This situation has further implications for their access to loans, as over one-third (34%) of small business owners reported that their financial institutions had communicated plans to limit lending in response to the recent changes within the banking industry.
As of May 3, 2023, 55% of small business owners found it harder in the past year to obtain capital to grow or operate their businesses.
At Integro Bank we understand the importance of providing easy access to capital for small businesses. We are committed to simplifying the process and offering a variety of capital options to meet the unique needs of entrepreneurs. More importantly, now, more than ever, having an advisor that walks with you to determine the best lending options for your business is incredibly important.
Whether you require a traditional loan, SBA lending options, commercial lending, mortgage solutions that understands the hurdles a business owner faces, or other alternative financing solutions, Integro Bank has you covered. Our experienced team will guide you through the application process, ensuring a seamless experience from start to finish. With our diverse range of capital offerings, we aim to empower small business owners to secure the funding they need to fuel their growth, realize their goals, and contribute to the thriving economy. At Integro Bank, we are dedicated to supporting the success of small businesses and making their journey to financial stability as smooth as possible. Inquire today for your lending needs.