Until they see sustained signs that the economy is recovering, small businesses owners are avoiding purchasing and leasing new equipment and taking on new debt.
According to a Raddon Financial Group survey of 1,200 small business owners, 47% said they had postponed equipment leases and purchases while 41% were cautious about taking on new debt. Thirty-nine percent said they have put off hiring new employees, 24% are not expanding their facilities and 19% have opted not to buy real estate.
Credit unions and other financial institutions that are offering online banking, bill payment and credit cards to small business owners have an edge over those that are not. These were the top three requested offerings, the Raddon survey revealed. Business loans came in fourth place. Payroll services were the least requested item.
Business package accounts, which are either put together by a credit union or bank or allow a small business to choose which products and services they prefer, showed the highest interest among larger firms with more than $2 million in annual sales, according to Raddon. Thirteen percent owned a business package account while one-third said they were extremely or very interested in owning such an account. Another 39% said they were somewhat interested.