Obtaining capital and managing cash flow can be daunting tasks for today’s small business owner. But solutions may be around the corner…at your local bank.

Our latest infographic highlights the financial difficulties and opportunities for small businesses.

Cash flow and costs are the top two challenges for small business owners.

  • 22% say cash flow is a challenge
  • 19% say costs of running business
  • 13% say revenues/sales
  • 9% say credit availability

On average, small business daily income is only $7 above daily expenses. Here are the average daily incomes for some industries:

  • Personal services = $3 net income
  • Retail = $4 net income
  • Repair and maintenance = $6 net income
  • Professional services = $7 net income
  • Restaurant = $11 net income
  • Health care services = $21 net income

Small businesses have a tougher time getting bank loans than larger companies:

  • 38% of businesses with revenue less than $5 million are approved for bank loans
  • 70% of businesses with revenue between $5 and 100 million and are approved for bank loans

Some common reasons for loan rejections:

  • 25%: Quality of earnings & cash flow
  • 21%: Size of company
  • 19%: Insufficient operating history
  • 18%: Insufficient credit

But small banks approve smaller companies more often:

  • 60% of businesses with revenue less than $100 K are approved for loans from small banks
  • 69% of businesses with revenue between $100K to $1M are approved for loans from small banks
  • 88% of businesses with between $1M and $10M are approved for loans from small banks

Infographic: Small Business Credit, Capital and Cash Flow

Infographic: Small Business Credit, Capital and Cash Flow