As with many businesses, the end of the year is often a hectic time for small companies and startups as well. Loose ends tied up, big sales closed, products being moved—throw in holiday schedules and it’s easy to lose sight of the new year until it’s already here. So let’s take a few minutes to consider 2014 and how this year will impact the coming one.
Evan Singer, general manager for SmartBiz, a loan company that automates the process of applying for and securing U.S. Small Business Administration (SBA) approved loans online, believes that 2014 was a great year for most small businesses. Singer says that his company, SmartBiz, reduces the wait time on securing an SBA loan from months down to weeks after an application is submitted on its website, and he has seen a lot of loan activity from small businesses this year.
In a recent interview, Singer explained to me three important things that he has dealt with on a daily basis and what they might mean to small businesses planning for 2015:
Despite what news outlets may have reported about small business lagging in 2014, Singer isn’t alone in his reports of positive business growth throughout the year. In fact, according to the Small Business Administration blog, small businesses added jobs each month for 57 straight months—which is the longest running series of employment growth in U.S. history. This is solid evidence that the economy is moving forward for small businesses and it also shows how small businesses have had a huge role in the recovery of our country’s economy after the recession. Both of these factors should bolster small businesses in their decision on whether to expand their companies in the coming year.
By giving the banks more positive financial growth information, the small business will more likely be able to obtain a loan and the amount of the loan might be higher.
SmartBiz does a lot of business with small companies looking to refinance and pay down higher-interest debt. Many loans through SmartBiz are at a 6- to 8-percent interest rate with longer terms that allow a business to have a lower monthly payment.
For any small company coming up for air during the end-of-year push, it’s important to start considering 2015 and what your business may need. Whether it’s money to add more jobs or more locations or a refi on a loan that would cut down on monthly payments, it may be time to look over those tax documents and start to formulate a plan before the big ball drops to ring in the new year.