In today’s volatile market, shaped by shifting policy, rising costs, and economic uncertainty, small business owners face new headwinds. According to recent data, spending among small businesses has declined from pre-pandemic levels. Many companies are slowing capital investments and tightening budgets. While retail continues to show resilience, industries like manufacturing and construction are showing signs of contraction, with some small manufacturers reporting a year-over-year drop in payment growth.
This cautious environment may seem discouraging, but for serious entrepreneurs, it presents a rare opportunity. As others scale back or delay launching new ventures, the field is clearing. Fewer startups means less competition. Slower investment from incumbents means greater visibility for new players ready to act.
In moments like this, success belongs to those who are prepared. If you’re truly committed to growth, now is the time to get your financing in order and take the lead before the next wave of business activity ramps back up. In this article, we’ll walk you through the financing options available and how a loan broker may be able to help you secure the capital you need to grow.
Seeing the Opportunity
Fear is a natural response to uncertainty. When the market is in flux, it’s common for aspiring business owners to take a step back and wait for more favorable conditions before making a move. But often, ideal conditions don’t return as quickly as expected and the chance to get ahead quietly passes by.
The businesses that succeed during times like these aren’t always bright, shiny corporations with millions of backers. They’re the ones that are prepared with clear plans and realistic expectations. When others hesitate, these business owners move forward with purpose, establishing their position as leaders.
That’s what makes this moment unique. With fewer new startups entering the market and some established businesses pulling back, there’s more space to establish your presence if you’re ready.
Moving forward doesn’t mean rushing in. It means knowing what your business needs to grow and putting those pieces in place now. And one of the most important of those pieces is financing. In the next section, we’ll explore why securing funding early can be a critical advantage for startups in a rocky economy.
Taking the First Step
Small business credit and debit card spending is down, giving a clear signal to lenders that business owners are either cautious or facing tighter cash flow. In response, lenders often raise their standards, making it more difficult to qualify for funding. While holding onto cash and delaying investments can be a smart short-term move, this collective caution can ripple through the economy, limiting access to capital just when it’s most needed.
That’s why it’s so important to plan ahead. With a well-structured approach and guidance from a knowledgeable loan broker, you can position yourself ahead of the curve and secure financing while others are still on the sidelines. For startups and manufacturers in particular, this access to capital can be a lifeline for growth.
Depending on your business’s goals and cash flow, long-term financing with a fixed interest rate can help bring in working capital without creating a heavy monthly burden. If interest rates are expected to rise, locking in a fixed rate now can protect you from future increases. Alternatively, if you anticipate rates falling, a variable-rate loan may be worth considering—though it does carry more risk.
A qualified broker can help you evaluate the options and design a loan strategy tailored to your business needs and risk tolerance.
Exploring Your Options
Expanding in a challenging economy is a bold move—but with the right planning, it can be a smart one. No matter what your business goals look like, there’s a financing solution designed to support your next step. Below is a snapshot of some common funding options available to small business owners today. Keep in mind, this is just a starting point. A loan broker can help you explore the full range of possibilities and build a strategy tailored to your needs.
- Business Line of Credit: A business line of credit offers flexible access to funds when you need them, often at lower interest rates than traditional credit cards. Interest only accrues on the amount you use, making it a smart solution for managing short-term expenses, smoothing out cash flow, or responding quickly to unexpected opportunities.
- Term Loans: Term loans provide a lump sum of capital you repay over a fixed period, making them well-suited for planned expenses like hiring staff, opening a new location, or launching a major marketing campaign. These loans vary in structure, so a broker can help you identify the right option based on your credit profile, revenue, time in business, and overall goals.
- Invoice Factoring: For startups that rely on invoicing, invoice factoring unlocks working capital tied up in unpaid accounts. This option allows you to sell your outstanding invoices to a factoring company, which advances you most of the invoiced amount upfront. The factoring company then collects payment directly from your clients. By closing the 30- to 180-day gap between invoicing and payment, factoring stabilizes cash flow to keep operations moving.
- Equipment Financing: Equipment financing is a great option for businesses that need machines, technology, or other tangible assets. The equipment itself typically serves as collateral, which makes this type of loan more accessible—even for newer startups. Financing isn’t limited to heavy machinery, either; software, vehicles, and IoT products may also qualify, depending on the lender.
- CRE Loans: Commercial real estate (CRE) loans help businesses acquire new property to expand. ARV (after-repair value) loans combine renovation funds with working capital based on the property’s projected value increase. With many loan options available, consult your broker to find the best fit for your needs.
- SBA Loans: While most SBA loans require 2-3 years of operation to qualify, there are available choices to younger businesses. SBA Microloans use nonprofit lenders with more flexible criteria, making them more accessible to newer businesses or startups. However, loan amounts tend to be smaller (usually up to $50,000), so they’re best suited for covering modest startup costs or short-term working capital needs.
This list covers just a few of the financing options available. To fully understand the breadth of possibilities tailored to your business, partnering with a knowledgeable broker is key. Beyond access to loan programs you won’t find advertised online, a good broker offers much more than just connections—they provide guidance, strategy, and support throughout the financing process.
Partnering with a Broker
You don’t have to seek financing on your own. Adding a loan broker to your team streamlines your financing journey. A broker saves you time you would otherwise spend hunting down lenders who may not be the right fit and applying for loans that aren’t ideal for your goals. Brokers invest in building lender relationships, which allows them access to lenders, loan products, and deals you won’t get anywhere else.
Use your broker to:
- Simplify the loan search
- Prepare documentation
- Understand loan criteria
- Access hidden deals
- Plan for the future
Working with a broker means positioning your business to secure the right financing—faster and with greater confidence. Uncertainty in the market is real, but for those who prepare, opportunity still exists. As others pull back, now is the time to move forward strategically. Speak with a broker, get your financial foundation in place, and take action before the window of opportunity begins to close.