There’s an old saying that a butterfly flapping its wings in London can cause a typhoon in China. That might be a bit of hyperbole, but global trade and economic winds can have a huge influence on small businesses. With America and Europe’s economy both looking strong, we expect small businesses to do well this year.
With markets looking set for continued strength, now is the perfect time to apply for a cash advance. By doing so, you’ll be able to raise the small business funding you need to expand and take advantage of rapid economic growth!
Only problem is, many small businesses lack the resources to take advantage of the rapidly expanding economy. Luckily, a cash advance can help. While SME’s often struggle to secure traditional bank loans, merchant cash advances are much more accessible. With a cash advance, you can secure money up front. In exchange, you will sell part of your future credit card sales to the company that provided with the cash advance.
Why should small businesses care so much about the global economy? And why is a cash advance the perfect funding solution? Let’s dig into this further.
Small Businesses Are Big Exporters
Consider that small American businesses account for 98% of all businesses that export. That’s right! 98%! Small businesses also accounted for 33% of the total value of exports in 2012! In other words, SMEs are now closely ingrained with the global economy. As the global economy goes, so too will small businesses. Luckily, the global economy is now doing quite well.
The British economy expanded by .6% over the last three months of 2016. Annualized, this would be a 2.4% GDP expansion, which is one of the highest rates seen in the United Kingdom over the past several years. This growth is coming despite worries over the pending “Brexit.” This also beat projections of a 2% annualized growth rate.
Meanwhile, bond yields on 10 year German government bonds rose to .49%. Why should you care? Bond yields tick up when investors are gaining confidence and investing in stocks and other assets. The government has to raise bond rates in order to attract investors. In other words, many European investors are very confident that the economy is doing well, and that stock markets and other financial markets will also do well.
Further, the Eurozone housing market has continued to gain strength. Housing is a good proxy for the health of the overall economy. Rising housing prices usually correlate with an expanding economy. In the three months through September, housing prices rose by 1.3%. Since the same time in 2015, prices are up 3.4%!
Across the Eurozone, the unemployment rate also dropped to a seven year low, economic activity surged to a five year high, and consumer prices ticked upwards.
As the global economy grows make sure your business is poised to take advantage. Give us a call today at (800) 208-3659 and ask how we can help your business grow!