News Roundup for Small Businesses: Issue 11, April 24th
LendingClub to stop originating small-business loans
News Roundup for SMBs is a new series we’ve started this year, with a new issue coming out every week. We’re putting together news regarding Finance, Economy and Small Business Opportunities, so you can spend less time reading up on the news and more time focusing on growing your business.
After 5 years of operations, LendingClub is shutting down their business lending arm, which was outperformed by their flagship consumer loan unit. Instead, the company will refer prospective businesses to two partner companies: Funding Circle and Opportunity Fund, depending on the business’ credit profile.
The recent global study The State of Small Business Cash Flow was recently published by Intuit QuickBooks. It reveals the challenges of SMEs and self-employed workers in managing their cash flow. Not only that, but it also goes into the behaviors and attitudes of entrepreneurs while going through cash flow challenges.
The U.S labor market is going through an unusual experience. While the unemployment level hovers at a near 50-year low, companies have to work a lot harder to retain and attract talent, with the brunt being carried by small and medium-sized businesses. According to data from the Bureau of Labor Statistics, hiring made by businesses with fewer than 50 employees slowed by more than 50% in the last quarter compared to the same span in 2018.
The Federal Reverse published their latest study Small Business Credit Survey, with clear insights on lending behavior. 57% of small businesses applying for financing in 2018, sought $100,000 or less, with the main motivations being to expand their business and to meet operating expenses. On the bright side, 47% of firms applying for credit received the financing they sought.
Here’s the deal: just because you’re running a small business doesn’t mean you’re saved from basic tech security practices. In a world where everything ends up being digitalized, here are a few tips and tricks to protect your business against cybercrime.