Marketplace for small businesses Lendio announced on Thursday the results of its latest survey showing that small business retailers also have a positive outlook about this holiday season.
According to Lendio, the survey observed retailers with under 100 employees and 87% of the small businesses are confident in their preparations for the holiday season and 81 percent are confident this season will be a success for their business. Among businesses that feel unprepared going into the holiday season, the largest group (30 percent) cited lack of capital as the reason. Brock Blake, founder and CEO of Lendio revealed:
“Small businesses are key drivers of our economy, so it’s crucial that they have the tools they need to succeed, including access to options for business-sustaining capital. It’s a positive sign for the economy that so many businesses are confident going into the holiday season, the biggest time of year for retailers.”
Other key findings from the study are listed below:
- Just 27% of small business retailers said they didn’t expect to need additional financing for the holiday season (another 37 percent are in “wait and see” mode). For small businesses needing capital, 81% revealed they would only need $50,000 or less, with building inventory (56%) and boosting advertising (28%) being the most common needs for additional financing.
- For companies seeking additional capital, 44% of small business retailers cited credit lines as the top source they would consider, followed by SBA loans from local banks or credit unions, friends and family, personal credit cards, SBA loans from a national bank, online loan marketplaces and home equity loans.
- If the need for capital should arise, 87% are confident they will be able to pay the loan back on time.
“The holiday rush can be a stressful time for small business retailers, whether it’s staffing issues, lack of capital, inventory, opening another location, boosting advertising or insufficient personal time. It’s inspiring that so many business owners are confident in their ability to repay financing. This time of year especially, we can all do our part to support the retailers who operate in and contribute to our local communities.”
Lendio added that the survey found that the added demands of the holiday season take a toll on small business owners, who find various ways to cope. Many small businesses are continuing to fight off exhaustion by increasing their caffeine consumption (58%); others report sacrificing personal needs (32%); and 42& of respondents say they are planning a vacation once the holiday season is over.