The survey by Lendio found that 87% of small businesses are confident in their preparations for the holiday season and 81% are confident this season will be a success for their business. Among businesses that feel unprepared going into the holiday season, the largest group (30%) cited lack of capital as the reason.
Other key findings from the survey include:
Just 27% of small business retailers said they didn’t expect to need additional financing for the holiday season (another 37% are in “wait and see” mode). For small businesses needing capital, 81% said they would only need $50,000 or less, with building inventory (56%) and boosting advertising (28%) being the most common needs for additional financing.
For companies seeking additional capital, 44% of small business retailers cited credit lines as the top source they would consider, followed by SBA loans from local banks or credit unions, friends and family, personal credit cards, SBA loans from a national bank, online loan marketplaces and home equity loans.
If the need for capital should arise, 87% are confident they will be able to pay the loan back on time.
In addition, the survey found that the added demands of the holiday season take a toll on small business owners, who find various ways to cope. Many fight off exhaustion by increasing their caffeine consumption (58%); others report sacrificing personal needs (32%); and 42% of respondents say they are planning a vacation once the holiday season is over.
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