Research from the Small Business Development Center (SBDC) found that 62% of millennials have a dream business in mind, but 45% state access to capital as the most significant barrier to launching a business. As a group, the generation born after 1980 and before 2000 seems to have the motivation but lacks funding resources due to student loan debt and housing costs.
The new QuickBridge white paper and infographic explore generational borrowing tendencies and provide tips for millennial entrepreneurs to increase the likelihood of getting a loan funded:
Current data shows that millennials seek smaller loans than Gen X and Boomers, and that loan approvals grew 119% year over year from 2017 to 2018.
Owners need to establish and build a business credit history by having a Federal Tax ID and dedicated bank account versus relying on personal credit to obtain a loan.
Millennial entrepreneurs should focus on managing the business account’s cash flow by collecting receivables and eliminating unnecessary expenses.
Business owners are encouraged to look at alternative lenders who may be more flexible in the types and sizes of companies they’ll offer loans.
“Our white paper and infographic reveal several ways for millennials to achieve their dream of running a successful business,” said QuickBridge President Ben Gold. “The research is clear. Alternative lending has emerged as a mainstream financing option for millennial-owned small businesses because our business model levels the playing field for enthusiastic startups to get the cash they need quickly.”
Founded in 2011, QuickBridge is an alternative business lender providing short-term working capital loans for small to mid-sized businesses nationwide. The company ranked two consecutive years on the Inc. 500 and is a Business Intelligence Group and ELFA award winner. It is a wholly owned subsidiary of National Funding.
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