NEW YORK, Jan. 16, 2025 (GLOBE NEWSWIRE) — Biz2Credit today released its monthly Small Business Earnings Report for December 2024, which revealed the average monthly earnings was $83,083 in 2024, a year that saw a long, steady increase in average month expenses, while revenues fluctuated – rising steadily in the first half of the year and declining from August through December.
The report summarizes financial data of companies that applied for financing via Biz2Credit and provides an examination of the financial health of small businesses by analyzing primary data submitted by small to midsized firms in the U.S. that uploaded on Biz2Credit’s award-winning online funding platform each month.
“The Biz2Credit Small Business Earnings Report for December 2024, provides a complete picture of the fortunes of small businesses, which struggled in the fourth quarter rising costs outpaced revenues,” said Rohit Arora, CEO and co-founder of Biz2Credit, who oversaw the research. “Small business owners went on a roller coaster ride in 2024. Earnings grew until July and declined every month through December. Average monthly earnings dropped by almost $68,000 in comparison to 2023 and also were lower than they were in 2022.”
Key Findings
- Average Monthly Earnings in 2024: $83,083. (2023: $150,917. 2022: $87,550)
- Average Monthly Revenue 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 highest in 2024 during the month of July ($136,800), a figure that was more than $100,000 less than earnings in September 2023 ($237,700), which was the best month for small businesses during the last three years, according to the Biz2Credit study, which covered Jan. 2022 through Dec. 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 downward trend began in July and continued the slide in October ($68,200), November ($49,200), and December ($42,100) of 2023.
Average Revenues were highest in the month of July 2024 ($824,700), and 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. Expenses dipped in November and rose again, ending the year at $705,400 in December.
| Month | Inflation | *Revenues | *Expenses | *Earnings | |||
| Jan. | 3.1 | $588,500 | $512,000 | $76,500 | |||
| Feb. | 3.2 | $651,500 | $586,700 | $64,800 | |||
| Mar. | 3.5 | $692,900 | $651,200 | $41,700 | |||
| Apr. | 3.4 | $748,900 | $687,500 | $61,400 | |||
| May | 3.3 | $781,500 | $689,500 | $92,000 | |||
| Jun. | 3.0 | $808,900 | $680,000 | $128,900 | |||
| Jul. | 2.9 | $824,700 | $687,900 | $136,800 | |||
| Aug. | 2.5 | $813,600 | $683,600 | $130,000 | |||
| Sep. | 2.4 | $795,800 | $690,400 | $105,400 | |||
| Oct. | 2.6 | $777,200 | $709,000 | $68,200 | |||
| Nov. | 2.7 | $740,300 | $691,100 | $49,200 | |||
| Dec. | 2.9 | $747,500 | $ 705,400 | $42,100 | |||
| 2024 average | $747,608 | $664,525 | $83,083 | ||||
*Revenues, Expenses and Earnings 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,” said Arora, one of the nation’s leading experts in small business finance. “The cost of rents, insurance, and equipment have soared, 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 to lower rates.”
“Even with lower interest payments, small businesses are operating under many financial pressures, and we are seeing that their profitability was on a steady decline for the second half of 2024,” Arora added.
“Donald Trump was elected based on his promise to fix the economy, and he says it will be a priority from Day One. He will have to focus not only on lowering interest rates but doing so in a way that does not kick-start inflation in 2025,” Arora said. “Based on the later months of 2024, the start of 2025 could be a rocky one for small businesses.”
Biz2Credit is continuing to monitor the revenues and earnings 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 on Biz2Credit’s award-winning financing platform each month. Click to review the Small Business Earnings Report. Each month the report will showcase the financial performances of small businesses in terms of changes in average revenue and expenses.
Methodology
Biz2Credit examines a number of small business financial metrics in the Small Business Earnings Report, including annual revenue, operating expenses, age of business, credit score, approval rate, and funding rate. Data is drawn from over 100,000 completed financing applications submitted to Biz2Credit’s online small business funding platform between Jan. 2022 and Dec. 2024. (The numbers were extracted 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 in custom 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 spreadsheet of three years’ worth of earnings data is available upon request.
Media Contact: John Mooney, (908) 720-6057, john@overthemoonpr.com
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