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Small Business Owners Continue to Weather the Recessionary Storm in Q2 2023

 Business owners are being forced to think fast on their feet as recessionary trends continue to creep into the economy. A rising cost of business combined with interest rates that are striking down borrowing power make the idea of growth feel like nothing more than a pre-2022 dream.

 Can businesses still find ways to grow?

 As customers put the brakes on spending, many businesses find that they lack the cash reserves needed for growth and sustainability. Money that comes in is quickly going toward payroll and operational expenses. This leaves little room for investments in expansions or improvements.

 Lack of investment spending is putting many businesses that lack reserves at a disadvantage compared to competitors. 

How Can Businesses Weather the Storm?

 “The US economy is at a tipping point, and rougher times may be ahead for businesses – all of which makes it imperative to secure financing through a stable banking institution,” shares Carson Lappetito, President of Sunwest Bank. 

For many small and medium-sized businesses, forming a relationship with a stable institution capable of providing financing options scaled for the needs of those businesses has never been more important.

Opening a line of credit with a business bank allows for quick cash infusions that can be used to cover costs needed to pay bills and fund projects. A line of credit can provide an important buffer when gaps are left by customers who are slow to pay bills.

A Surprising Beacon of Light: Trends Emerging During Inflationary Times

For many businesses, muddling through 2023’s inflationary storm means putting off big capital expenditures. However, not all costs can wait.

The idea that necessity is the mother of invention is strongly coming into play for businesses looking for ways to reduce operational costs without necessarily reducing operations. This is especially true for businesses that are either expanding or breaking ground on infrastructure projects. In fact, necessity is precisely the reason why solar has emerged as one of the inflation-busting solutions being used by property developers and other business owners.

“People are trying to address inflation-driven high energy costs, and solar offers a solution,” according to James Rector, Director of Solar Lending at Sunwest Bank. Rector also highlights the fact that new construction policies and consumer demand are merging to create a massive push for solar. During this era of recession red flags, solar presents an opportunity to stabilize energy costs going into an unpredictable future.

 The big takeaway here may just be that business owners are more motivated than ever before to work their way around recession roadblocks using necessity as the driver of invention.