If you’re like those of us at Direct Capital, December is a busy month. We’re spending the month helping our customers finish the year strong, but all of us also have an eye on 2013.
After taking a look at where the economy stands today, the state of lending and knowing what I know about small businesses and their unique challenges, I’m ready to make a bold prediction: 2013 will be the year of small business lending.
All the ingredients are there. Let’s go down the list:
- A growth in demand for small business lending;
- Sustained consumer spending;
- Small business owners looking to grow but not having deep pockets;
- Looming economic uncertainty that makes business owners want to get projects done now;
- Growing lending availability from independent lenders and finance firms.
Those five points together help to explain why lending is forecast to increase next year, and it helps explain why I’m as bullish on lending as I am. Not every small business will have the combination of access and the right situation, but with useful working capital loans* and equipment leasing that can cover the spectrum of needs, it’s far more accessible than it was in the past.
For small businesses who necessarily operate with a razor-thin profit margin, having the ability to get a little financial help can be the difference between installing much-needed office equipment and going without. If this whole fiscal cliff mess is sorted out by Congress and the President—not a lock, but something I think all sides are hoping for—the economy should be in good enough shape to justify trying to grow. If not, lending can bridge the difficult times for you.
So look for 2013 to be the year of lending. Do you expect to go looking for financing?
Photo credit to iStock
*Working capital not available in the following states: AK, DE, ND, VT