Business Debt

natedogg

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What do you think the average small business debt is in the US? I have a feeling a lot of businesses are living above their means with their nice cars and lavish vacations.
 

BassTrackerBoats

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The rule of thumb used to be that a small business was a business that employed less than 50 people.

That can actually be a decent sized operation doing well into the 7 figures and more likely into the 8 figures.

A well structured business with that kind of cash flow can handle the weight of a fair amount of properly set up debt.
 

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The average U.S. small-business owner has $195,000 of debt, according to a 2016 study by Experian.

ref. https://www.nerdwallet.com/blog/small-business/how-to-get-your-business-out-of-debt/

As BTB pointed out - the def. of a small business. I would say that for 2018 for what we consider a small business would be

10 or less.

200K is not much money even for a business with 10 or less employees.

Ten or less for a small business?

That's a micro business not small... not sure of the official statistics so I might be off by a big number but I remember the SBA threshold being different back when I did SBA loans. I don't remember the exact number but I'm sure one of you smart guys will be able to get that and call me a clown for being so far off.
 

b1step-ahead

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200K is not much money even for a business with 10 or less employees.

Ten or less for a small business?

That's a micro business not small... not sure of the official statistics so I might be off by a big number but I remember the SBA threshold being different back when I did SBA loans. I don't remember the exact number but I'm sure one of you smart guys will be able to get that and call me a clown for being so far off.

You will always be a clown! I meant to us as IM's that a small business is more like 10 or less that prob can't afford to hire a

full time seo company. But yeah the classic def. is 50 or less. * On a side note I think we have a big goog update rolling in.
 

natedogg

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200K is not much money even for a business with 10 or less employees.

Ten or less for a small business?

That's a micro business not small... not sure of the official statistics so I might be off by a big number but I remember the SBA threshold being different back when I did SBA loans. I don't remember the exact number but I'm sure one of you smart guys will be able to get that and call me a clown for being so far off.
BTB you think 200K isn't much debt for a small business?
 

BassTrackerBoats

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BTB you think 200K isn't much debt for a small business?

No, that is not much debt at all for a small business.

I think that is even manageable for your average USA citizen let alone a business that is generating decent revenue.

Going back to my bottled water days I look at the business we owned in Middlesex, New Jersey, and we owed close to 400K with 15 employees and it was quite manageable.

That was circa 1987.
 

STOCKCAT

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US has a perfect bankruptcy system. So dept is never and will never be a problem.
 

b1step-ahead

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No, that is not much debt at all for a small business.

I think that is even manageable for your average USA citizen let alone a business that is generating decent revenue.

Going back to my bottled water days I look at the business we owned in Middlesex, New Jersey, and we owed close to 400K with 15 employees and it was quite manageable.

That was circa 1987.


New Jersey bottled water?

 
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