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New survey results uncover business finance options considered by prospective small business owners.
As America recognizes Small Business Week between April 29 and May 5, the National Foundation for Credit Counseling® (NFCC®) is placing the spotlight on the financial decisions people consider when deciding to start their own business. Results of the 2018 Consumer Financial Literacy Survey, conducted online by Harris Poll in March 2018 among 2,017 U.S. adults ages 18 and older, revealed that adults ages 18-34 are more likely than their older counterparts to say they would solicit crowdfunding or borrow money from friends, family, or business partners.
“Making the right financial decisions for yourself and your business requires a sharp focus in a world where there are more choices than ever before,” said NFCC spokesperson Bruce McClary. “Having a clear understanding of each option helps make it easier to find the way forward at the intersection of personal and business finance.”
Overall, if they were looking to start a new business, nearly one-third of all American adults (32 percent) would seek a business loan through a community or national bank, credit union, or online-only lender. Adults ages 35-44 are more likely than their younger and older counterparts to say they would apply for a grant or seek a business loan through a national bank, community bank, or online-only lender. Proceeding confidently in this direction may have something to do with expressed levels of financial knowledge about more traditional lending sources. The survey revealed that adults 35 and over are more likely than those between the ages of 18 and 34 to feel knowledgeable about the fees their banking institution charges. Older adults are also more likely to give themselves high marks for their general knowledge of personal finance.
About one in three of all adults (34 percent) were not at all sure how they would come up with the money if they were looking to finance a new business. With so many choices, it is understandable that there is so much uncertainty about where to turn for small business financing. Fortunately, there are resources available to comprehensively assist small business owners as they transition from consumer financial products to more appropriate business-oriented products and services.
Utilizing the Sharpen Your Financial Focus® (Sharpen) program as the initial framework, the NFCC offers Small Business Owner Financial Coaching to provide personal financial reviews and education for small business owners who are using consumer-oriented financial products to finance their small businesses. Supported by TD Bank and the TD Charitable Foundation, the program is available exclusively through the nonprofit member agencies of the NFCC.
Anyone with an interest in making the most of their personal financial goals while starting or growing a small business can connect with an NFCC Member today by visiting www.nfcc.org/smallbusiness or calling toll-free 844-359-3792.
About the Survey
The 2018 Financial Literacy Survey, sponsored by BECU, Washington State’s largest credit union, was conducted online within the United States by Harris Poll on behalf of the NFCC (National Foundation for Credit Counseling) between February 28 and March 2, 2018, among 2,017 U.S. adults ages 18+. For complete research method, including weighting variables and subgroup sample sizes, please contact the NFCC at firstname.lastname@example.org.
Founded in 1951, the National Foundation for Credit Counseling® (NFCC®) is the nation’s first and largest nonprofit dedicated to improving people’s financial well-being. With nearly 600 member offices serving 50 states and Puerto Rico, our NFCC Certified Credit Counselors are financial advocates, empowering millions of consumers to take charge of their finances through one-on-one financial reviews that address credit card debt, student loans, housing decisions and overall money management. Make one of the best financial decisions of your life. For expert guidance and advice, call (800) 388-2227 or visit www.nfcc.org today.Learn more