Get Paid w/ Autobooks Resources
About small businesses and cash flow
Small businesses are no small business. At $4.8 trillion in GDP, U.S. small businesses are equivalent to the third largest economy in the world. There are 30.7 million small businesses in the United States, making up nearly 50% of the U.S. workforce according to the SBA’s 2019 report. In addition, there are 1.5 million non-profits and an estimated 41 million independent workers. These service professionals, independent contractors, consultants, medical professionals, schools, charitable organizations, and churches are the backbone of their local economies. They provide employment, drive the local tax base, strengthen community programs, are more likely to donate to local charities, and drive further entrepreneurship. It is estimated that for every dollar spent at a small business, 67 cents stays in the local community, and that on average small businesses reinvest 23 cents of that dollar into other local businesses.When there is a disruption in how a small business can get paid, the results can be catastrophic.
The average small business has only 27 days of cash reserves, and one quarter of small businesses have less than 13 days of cash reserves. Positive cash flow is critical for survival. Millions of small businesses that previously relied on face-to-face interactions for sales are being forced to adapt to keep cash coming in.
We hosted a webinar titled "Building the Business Case for Small Business" that includes more information about the cash flow needs of small businesses along with their payment and digital banking expectations.
Helping small businesses post COVID-19
The impact of COVID-19 has forced many small businesses to adapt their business models from accepting payments in person to "Getting Paid at a Distance." According to a Special Report on Coronavirus and Small Business from the US Chamber of Commerce.
- One in four (24%) small businesses have shut down temporarily in response to COVID-19.
- Among those who haven’t temporarily shut down yet, 40% report it is likely they will do so within the next two weeks. This means a total of 54% of all small businesses report they are closed or could close within the coming weeks.
- Small businesses are most favorable toward financial assistance in the form of direct cash payments (56%), but also prefer SBA disaster loans (30%).
To learn more on about how the Autobooks team leverages small business interviews and insights to help enable small businesses to "Get Paid at a Distance," please watch this webinar. Included in this webinar are timely examples of how small businesses and non-profits are transforming themselves from accepting payments in person to online.
Autobooks Recognized by Money 2020 in the category "Short Term: Economic Stimulus" for our efforts to help small businesses get paid online. You can listen to our podcast episode here.