These times of volatility give business opportunities and also exposes risk as the business market and capital markets fluctuate.
While many owners are raising prices to make up the additional costs, others are more worried about losing customers and sales declining. In fact, 74% of owners surveyed say inflation is not easing.
Interest rate hikes are further compounding operations for owners, many who rely on lines of credit to operate are facing rising SBA loan rates. Over 53% of owners said rate hikes are negatively impacting their business.
One owner commented, “The cost of all of my lines of credit (including SBA) are rising significantly. With supply chain issues causing parts/equipment to have longer delivery cycles, I am often caught with things on my line of credit longer while we wait to get and install them.”
In addition to these financial pressures, over 26% of business owners who took out COVID-19 Economic Injury Disaster Loans say they are struggling to repay them.https://www.bizbuysell.com/insight-report/?utm_source=bizbuysell&utm_medium=bbs_email&utm_campaign=insightsbroker012023