Nearly three in four small business owners believe they can withstand revenue shortfalls for only two quarters before becoming concerned about the future of their businesses, according to a recent survey by TD Bank. The survey on financial preparedness also found that 43% of small business owners said their businesses would not survive if they fell short on revenue for three or four quarters.
TD Bank found that 99% of small business owners assess their financial preparedness quarterly and more frequently. Eighty-two percent said they are likely to consider applying for a loan or line of credit during the next 18 months to support their financial preparedness goals. The top goals for loans or lines of credit are maintaining company operations, undertaking a significant financial technology upgrade or overhaul, expanding into new market vehicles and making payroll. Eighty-seven percent were confident their applications would be approved.
