Alaska businesses and small businesses are practically synonymous, as 99.1% of firms in Alaska are small businesses. Together, these small employers contribute to just over half of the state’s employment, according to the SBA Office of Advocacy. But they’ve faced serious challenges the past couple of years, including the pandemic’s effect on their businesses, the rising cost of goods, as well as severe supply chain and hiring challenges.
For many businesses based in Alaska, securing small business financing continues to be a challenge. Fifty-one percent of small business owners who responded to the 2021 Annual Small Business Survey Report by the Alaska Small Business Development Center reported it would be difficult to raise capital.
How a Small Business Loan Can Help Your Alaska Small Business
When asked, “What would make it easier to raise capital for your small business?” the top three responses were “Central place to learn options, increased profitability and more non-traditional fina poland whatsapp number data ncing.” Here we’ll explain small business loan options and how to qualify.
Small business loans can provide much-needed capital for businesses, whether they are trying to recover from the pandemic, are in a growth phase, or are even just getting started. Funds can help businesses hire staff or increase pay, invest in inventory, purchase or upgrade equipment or invest in marketing as a few examples.
Short-term financing can be particularly helpful to businesses experiencing a temporary cash flow crunch due to seasonal fluctuations in sales or short-term supply chain interruptions, for example, while lo the work of a product manager is somewhat cyclical ng-term financing can be used to expand to a new location, invest in equipment or make other large purchases.
Types of Small Business Loans to Choose From
A previous report by the Alaska SBDC found that 21% of business owners looking for financing would seek loans from banks. While these loans often come with very good terms, many businesses won uk data ’t qualify for traditional bank loans. It’s important to understand all your options so you don’t overlook ones that may be accessible to your business.
Here is a quick rundown of some of the top loan options for small businesses:
Business credit cards
If you have a good personal credit score/business credit score and sufficient income (from any source) you are probably a great candidate for a business credit card. The advantage of a business credit card as a financing option is that they let entrepreneurs access capital quickly, benefit from perks like travel rewards or cash back, and many times they help you build business credit.