subject: Meeting Working Capital Requirements Of Small Businesses [print this page] According to the survey conducted by the Angus Reid Public Opinion, as many as 47% of the small businesses surveyed in Canada reported a slight to significant downturn. The high percentage has brought into focus fears by many analysts that despite a stronger than expected economic performance, small business owners in Canada are far from being secure from the economic recession of the past two years.
Many small businesses find it is difficult to meet their working capital requirements with pressures on their margins and overall sales figures. With uncertainty still looming large in the global economy with countries in Europe facing complete bankruptcy, there is more pressure on the smaller businesses to stay afloat. Of course several individuals are dependent on these small organizations for their jobs and a negative impact on small business owners can directly affect the job market in the country.
Business owners say that as long as they can meet their monthly working capital requirements and do not have face losses, things will be fine and job cuts are not expected at the moment. However, for many small business owners, getting a short-term loan to meet current expenses is getting tougher and banks have become much stricter with their lending norms ever since the global recession began more than couple of years back. Also it is not just lending norms that are creating a problem for small businesses. Many of them already have loans against their name and hence do not qualify for further lending at the moment. This makes it quite tough to convince lenders to help raise further capital to maintain smooth operations of their businesses.
Of course some small business owners have used their entrepreneurial and enterprising skills to raise money to meet immediate working capital requirements. They have resorted to loans such as vehicle title loans to get short term funding for their businesses. Most small companies or their proprietors own cars or even trucks and mobile homes. These vehicles can be used to obtain a vehicle title loan and the borrowed money can be used for business operations. Small business owners find this as a simple and effective solution as it helps them raise quick cash for business operations and marketing expenses. The money spent can help acquire new clients or customers immediately helping these companies to build enough reserves for future working capital requirements. Given the nature of these loans, you can repay with interests and other charges and use them again as and when the need arises. Car title loans are one of the best ways to acquire funding for immediate business expenses.
