Economists across the country have a message for small businesses: Buckle up, because a recession is coming.
A new report from online lender BlueVine suggests that small businesses have heard the message loud and clear -- but for the time being have decided not to do anything about it. Based on a survey of more than 1,000 American small business owners, it found that 80 percent of small businesses are worried about a potential recession, but that nearly half (44 percent) have not yet taken action to prepare for one.
"Considering the fact that approximately 1.8 million SMBs went out of business between December 2008 and December 2018 as a result of the last recession … these findings should be particularly worrisome," author Andrew Martins says in an article for Business News Daily.
BlueVine CEO Eyal Lifshitz told Martins that small businesses "should be taking time now to prepare their business while the economy is still strong." The question is: How?
If past is prologue, the answer might be to seek a loan or line of credit -- even if you don't really need one. "One of the biggest issues that cropped up during the 2008 recession was that bank loans came to a screeching halt as the economy shrunk, leaving businesses in the lurch," continues Martins, who quotes BlueVine's report: "The golden rule of financing is the best time to seek financing is when you don't need it … As a possible recession looms, it is critical that more small business owners begin investigating working capital now while the economy is strong, business needs are minimal and the business is in solid financial standing to be approved by a lender."
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