PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Small Businesses Expecting Growth, but Face Challenges Accessing Working Capital, according to CAN Capital’s Small Business Health Index

By PaymentsJournal
August 22, 2016
in Press Releases
0
0
SHARES
0
VIEWS
Share on LinkedIn
Latest News

Latest News

Majority Remain Susceptible to EMV Fraud Charges

New York, NY (August 22, 2016) – Small businesses are overwhelmingly positive in their expectations for the next 12 months, with 64 percent anticipating growth, according to the Small Business Health Index from CAN Capital, the market share leader in alternative small business finance. With growth comes the need for funding to finance expansion and new projects, but 42 percent of small business owners say it’s quite or extremely challenging to gain access to working capital.

Most small businesses are in need of smaller amounts of capital, which the traditional loan process typically doesn’t allow for. Specifically, 66 percent of small business owners are looking for amounts of $50,000 or under when seeking funding, with the top reasons being to purchase equipment and/or inventory (22%) or to expand operations (21%).

“It’s encouraging to see small business owners feeling so good about their prospects for growth,” said Daniel DeMeo, Chief Executive Officer, CAN Capital. “To ensure they are able to achieve their goals, it’s important that they have fast, efficient access to working capital to fuel their expansion.”

Surprisingly, 87 percent of small business owners have never tried obtaining working capital from an online finance provider, highlighting the need for educating small businesses on alternative sources of funding. When small business owners successfully secure funding, the most-used options are traditional banks (28%), credit cards (25%) and friends and family (21%).

“It’s clear that small business owners don’t always know how to find the kinds of loans they need,” said DeMeo. “For those in need of larger loans, there are an array of options, including traditional bank loans. But when small business owners come to us for access to working capital, the average loan amount is about $50,000. Many banks and other financial institutions find it inefficient to loan in these smaller amounts, leaving a huge gap in the market for small businesses. Alternative finance companies are able to fill that gap, and do so with real-time approvals and fast funding, so business owners can get back to running their businesses instead of searching for capital.”

Opportunities & Challenges

As mobile payments options are expanding and growing in popularity among consumers, more small businesses are recognizing the need to tap into this payment offering for customers. Thirty-four percent of small businesses currently accept mobile payments such as Apple Pay, a notable increase from April 2015 when only 13 percent were accepting this form of payment.

However, despite last year’s October 1st deadline for small businesses to upgrade their POS systems to accept EMV chip enabled credit cards, 73 percent of small business owners say their current POS systems are not EMV compatible. That means a large majority of small businesses would be liable for consumer losses if an in-store transaction is conducted using a counterfeit, stolen or compromised card. Despite these potential costs and liabilities, 70 percent of small business owners do not plan to invest in new payments technology in the next twelve months.

DeMeo said, “It’s concerning how many small businesses are leaving themselves open to paying for liabilities and losses from potential credit card fraud. By working with payment processors, small businesses should work out a plan to upgrade their payment systems both to protect themselves and to better serve their customers.”

Though small business owners are feeling positive about the near term, they do see some potential threats on the horizon. Specifically, excessive regulation (25%), competition from big box retailers (20%) and rising operational costs (18%) are seen as the biggest threats to small businesses today.

With the election just a few months away, small businesses are keeping a close eye on the impact the issues being debated could have on them. Sixty percent of small business owners do not agree with increasing the minimum wage to $15 an hour, a hot topic among the presidential candidates. When asked which presidential candidate would be the best for small businesses, 37 percent cited Donald Trump, 21 percent Hillary Clinton and 42 percent said neither.

Learn more about the CAN Capital’s Small Business Health Index by visiting www.cancapital.com.

0
SHARES
0
VIEWS
Share on LinkedIn

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    ai spend

    Escalating AI Spend Is Prompting a Strategic Recalibration

    October 16, 2026
    bank chatbot

    How Banks Can Nail the Handoff from Chatbots to Human Agents

    October 15, 2026
    diagonal payments solutions

    The Next Evolution in Payments: Diagonal Thinking

    October 14, 2026
    Mikko Kahkonen

    Making Physical Cards Matter in a Digital World 

    October 13, 2026
    debit loyalty

    Building Loyalty Via Debit Means Maximizing Rewards Potential

    October 12, 2026
    synthetic identity fraud

    Synthetic Identity Fraud Is Surging—and Often Goes Unnoticed

    October 9, 2026
    Gift cards

    Lessons from the Gift Card Forum: The Critical Shift from Breakage to Redemption

    October 8, 2026
    AI-powered fraud prevention

    In the Escalating Fraud Fight, Industry Solidarity Is Imperative

    October 7, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result