When it comes to the 2023 economic outlook, it seems the only thing analysts can agree on is that nothing is certain.
Several challenges face the economy as we emerge from the COVID-19 pandemic. A recent Lehigh Valley Business article outlined them as follows:
Demand for goods and services continues to outpace supply. Businesses face labor shortages that have led to the strain of increased wages. Supply chain challenges are delaying projects and business cycles. The Fed is trying to squash inflationary pressures by raising interest rates. (LV Business, Heather Hall*)
In light of these challenges, small business owners may be wondering what they can do to ease the strain of uncertainty.
One measure businesses may take is to apply for a line of credit. A line of credit is a type of small business loan that is available to startup or existing businesses who need quick access to money. Lines of credit can be a lifeline when revenues decline or payment is delayed.
Lines of credit are different than other loans in several ways: 1) Business owners are able to withdraw funds, up to the credit limit, at their discretion 2) Funds are “revolving” meaning that, after withdrawals are repaid they again become available for use. 3) Interest is paid only on the funds withdrawn. For example, if a business secures a $10,000 line of credit but only uses $2,000, the interest would be paid only on the latter.
Rising Tide Community Loan Fund offers line of credit financing that can be used to cover operational expenses like supplies, payroll and inventory management.
Like other Rising Tide loan products, lines of credit are made accessible to small businesses that may not qualify at more traditional banks. Rising Tide offers lines of credit up to $15,000, with a commitment to serve low-income and underserved communities.
Rising Tide Community Loan Fund helps the local economy thrive by offering loan products to the startup and established small businesses in our community whose risk factors make it difficult to obtain traditional business funding. Rising Tide offers microloans, technical resources and marketing assistance to business owners where resources and opportunities for growth are limited.
*Link to Lehigh Valley Business article, Preparing Your Business for an Uncertain 2023 Economic Outlook (Heather Hall), click here. Please note the article is behind a pay wall.