RaiseCapital Blog
by RaiseCapital.com | Posted on February 11, 2010
The National Federation of Independent Business Index of Small Business Optimism improved slightly in January to 89.3, 1.3 points above December’s reading. January’s index is 8.3 points higher than the survey’s second lowest reading reached in March 2009 (the lowest reading was 80.1 in 1980). But optimism has clearly stalled in spite of the improvements in the economy in the second half of 2009. The quarterly Index readings have been below 90 for 7 quarters, indicative of the severity and pervasiveness of this recession.
“Small business owners entered 2010 the same way they left 2009, depressed,” said William Dunkelberg, NFIB chief economist. “The biggest problem continues to be a shortage of customers.”
Regular borrowers (accessing capital markets at least once a quarter) continued to report difficulties in arranging credit at the highest frequency since 1983. A net 14 percent reported loans harder to get than in their last attempt, down a point from December.
Eleven percent of all owners reported that their borrowing needs were not satisfied, up three points from December. The remaining 89 percent of all owners either obtained the credit they wanted or were not interested in borrowing. Only 5 percent of the owners reported “finance” as their number one business problem (up one point).
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Getting a business loans (even if your collarel is sound) is worse than pulling a tooth. Most private lenders when inclined to offer you a loan are a bunch of body-snatchers (to put it mildly) who demand somewhere in the vicinity of 30% to 70% of your company (oh, yes, after all, if you don't have the financing to launch your ideas, etc., we "deserve" that much as financiers, etc., ). I say, to hell with them all. Take a long hike on a very short fence.