NEW YORK, Jan. 16, 2025 (GLOBE NEWSWIRE) — Biz2Credit today released its monthly Small Business Earnings Report for December 2024, which found that average monthly earnings were $83,083 in 2024, a year that saw a long and steady increase in average monthly expenses while incomes fluctuated — rising steadily in the first half of year and falling from August to December.
The report summarizes the financial data of companies that applied for financing through Biz2Credit and provides an examination of the financial health of small businesses by analyzing primary data submitted by US small and medium-sized firms that are uploaded to the rated online financing platform. with Biz2Credit prices every month.
“Biz2Credit’s December 2024 Small Business Earnings Report provides a comprehensive picture of the fortunes of small businesses, which struggled in the fourth quarter as rising costs outpaced revenues,” said Rohit Arora, CEO. and co-founder of Biz2Credit, who oversaw the research. . “Small business owners went on a rollercoaster ride in 2024. Earnings rose through July and fell every month through December. Average monthly earnings fell by almost $68,000 compared to 2023 and were also lower than in 2022.
Key findings
- Average monthly earnings IN 2024: $83,083. (2023: $150,917. 2022: $87,550)
- Average monthly income IN 2024: $747,608. (2023: $515,208. 2022: $298,658)
- Average monthly expenses IN 2024: $664,525. (2023: $364,292. 2022: $211,108)
Average earnings were the highest in 2024 during the month July (136,800 dollars), a figure that was more than $100,000 less than earnings in September 2023 ($237,700), which was the best month for small businesses over the past three years, according to the Biz2Credit study, which covered January 2022 through in December 2024.
Earnings exceeded $100,000 during the summer months of 2024: June ($128,900), July ($136,800), August ($130,000), and September ($105,400). The downtrend started in July and continued to slide in October ($68,200), November ($49,200) and December ($42,100) of 2023.
Average income were the highest in the month July 2024 ($824,700), and the lowest in January ($588,500).
Average expenses rose steadily throughout 2024 from $512,000 in January, the lowest month until October ($709,000), the highest month. Spending decreased in November and rose again, ending the year at $705,400 in December.
| MONTH | inflation | *Income | * Expenses | *Profits | |||
| January | 3.1 | $588,500 | $512,000 | 76500 dollars | |||
| February | 3.2 | 651,500 dollars | $586,700 | 64800 dollars | |||
| March. | 3.5 | $692,900 | $651,200 | 41700 dollars | |||
| APRIL | 3.4 | $748,900 | 687,500 dollars | $61,400 | |||
| May | 3.3 | 781,500 dollars | $689,500 | 92,000 dollars | |||
| JUNE | 3.0 | $808,900 | $680,000 | $128,900 | |||
| July. | 2.9 | $824,700 | $687,900 | 136,800 dollars | |||
| August | 2.5 | $813,600 | $683,600 | $130,000 | |||
| September | 2.4 | $795,800 | $690,400 | $105,400 | |||
| October | 2.6 | $777,200 | $709,000 | 68200 dollars | |||
| November | 2.7 | 740 300 dollars | $691,100 | 49200 dollars | |||
| December | 2.9 | $747,500 | $705,400 | $42,100 | |||
| 2024 average | $747,608 | $664,525 | $83,083 | ||||
*Revenues, expenses and profits represent a three-month average each month.
“Although the inflation rate has been trending lower since 2022, the overall cost level for small businesses has increased and they are unable to raise their prices high enough to make up the difference,” Arora said. one of the country’s leading experts in the small sector. business finance. “The cost of rent, insurance and equipment have increased, as has the cost of labor. Further, businesses that borrowed money often did so at variable rates, so they paid a high cost of capital in 2024. Fortunately for SMB owners, the Federal Reserve has begun lowering rates.”
“Even with lower interest payments, small businesses are operating under a lot of financial pressure and we are seeing their profitability on a steady decline for the second half of 2024,” Arora added.
“Donald Trump was elected on his promise to fix the economy, and he says that will be a priority from Day One. He will have to focus not only on cutting interest rates, but do it in a way that does not start inflation in 2025,” Arora said. “Based on the later months of 2024, the beginning of 2025 it can be difficult for small businesses.”
Biz2Credit continues to monitor the revenue and income of the tens of thousands of companies that apply for financing on the online platform each month to provide one of the most up-to-date readings on small business health currently available.
The data is drawn from applications submitted to Biz2Credit’s award-winning funding platform each month. Click to review the Small Business Earnings Report. Each month the report will show the financial performance of small businesses in terms of changes in average income and expenses.
METHODOLOGY
Biz2Credit examines a number of small business financial metrics in the Small Business Earnings Report, including annual revenue, operating expenses, business age, credit score, approval rate and financing rate. The data is drawn from over 100,000 completed financing applications submitted to Biz2Credit’s online small business financing platform between January 2022 and December 2024. (Numbers are drawn from non-PPP loan applications.)
About Biz2Credit
Founded in 2007, Biz2Credit has helped thousands of companies access more than $10 billion in small business financing. The company is expanding its industry-leading Biz2X technology into customized digital platform solutions for banks and other financial institutions, investors and service providers. Visit www.biz2credit.com, LinkedIn, Instagram, Facebook and X (formerly Twitter).
Editor’s note: A income table for three years data is available upon request.
Media contact: John Mooney, (908) 720-6057, john@overthemoonpr.com
