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Despite access to credit, many business owners are reluctant to take on debt
A survey report from Sageworks
Raleigh, N.C., July 24, 2014 – Despite reports that small business loans are becoming easier to obtain, a majority of small business owners don’t ever apply for them, according to a survey from Sageworks, a financial information company. When asked if they had ever applied for a loan for their business (including personal loans), just under 77 percent of small business owners said they had not. All businesses surveyed were less than 10 years old.
The survey also asked small business owners why they chose other means of funding over business loans. 62 percent of respondents said it was because they did not want to take on debt, and 24 percent said they did not believe they would be approved for a loan. Twelve percent thought the cost of credit was too high, while nine percent said the loan process was too time-consuming.
Sageworks conducted the online survey between April 23, 2014 and April 25, 2014, collecting responses from 286 small business owners. The poll’s respondents were all business owners that have been in operation for less than ten years. They were not randomly selected.
Sageworks is a financial information company and the leader in the analysis of privately held companies. The company provides risk-management solutions to financial institutions and financial analysis and benchmarking applications to accounting firms and private companies. Sageworks data and applications are used by thousands of accounting firms and financial institutions across North America and internationally.