One of the leading alternative providers of capital to small businesses, CAN Capital, announced on Thursday (April 7) that it has provided access to more than $6 billion of working capital to small businesses. The company said it has helped over 70,000 small business owners open new locations, purchase inventory, buy equipment and a myriad of other endeavors with the funding it facilitated.
In a press release, CAN Capital CEO Daniel DeMeo said:
"To reach the $6 billion milestone is a huge accomplishment for CAN Capital, highlighting our experience and our dedication to helping small businesses succeed. Eight years after the financial crisis, many small businesses still have trouble accessing working capital. We are committed to using technology to offer a variety of fast, efficient financial solutions for the full spectrum of small businesses, including those that are too small to get capital from other types of financial organizations and those for whom a traditional bank product doesn't fit. Small businesses are the engine of America's economy, and we are proud to support their growth."
Since it opened its doors 18 years ago, CAN Capital said it has assisted more than 170,000 SMBs across various industries access funding. In the last five years, CAN Capital’s transaction count has increased by 29 percent (CAGR), and its revenue has grown by 24 percent (CAGR), with commensurate growth in earnings.
Last year, CAN Capital and PYMNTS launched the Store Front Business Index (SFBI), a quarterly metric to measure the health of a subset of small businesses in the United States, with a specific emphasis on “store fronts,” or those businesses that line the Main Streets and side streets of our local communities.
In the latest index release, these store fronts were found to be growing faster than the U.S. GDP — 3.1 percent versus 2.7 percent. These businesses represent 3.8 million businesses, accounting for nearly 37 percent of all SMBs.
The SFBI stood at 112.9 points in Q2 2015, compared with 109.5 points in Q2 2014. This represents growth of 3.1 percent in real terms between Q2 2014 and Q2 2015. Based on compounded annual growth rates, that growth outpaced real GDP growth of 2.7 percent — a significant difference of 40 basis points.