It’s often been said that local mom and pop shops are the backbone of the American economy. These small businesses are traditionally family-owned or independent—hence the name “mom and pop.” They usually operate in one location with just a small number of employees.
Small businesses make up 99.9% of all businesses and account for 64% of new jobs in America, according to the SBA. However, mom and pop shops may struggle to compete against larger companies with better name recognition and more buying power.
As a small business owner, you’ll inevitably come across times when having extra funds could come in handy, including helping expand production, pay staff, and cover bills. There is not necessarily one right time or reason to start looking into your business loan options.
Here are a few reasons to secure a commercial loan for your mom and pop shop.
Building Credit.
Nothing helps establish business credit like paying back a loan on time. So procuring funding gives you more flexibility when times get tough, plus you can pay it back quickly and establish an excellent credit record in the process.
Increase Working Capital.
It’s probably safe to say that most companies can always use more working capital, even in a good financial position. Increased capital enables you to pursue projects and other initiatives that perhaps you hadn’t thought about; now, with a business loan in place, you can expand the scope of your plans.
Developing a Relationship with a Lender.
When you’re in business for yourself, a trusted partner, especially in the financial field, is invaluable. Starting with a small business loan and maintaining a productive working relationship, you are investing in a crucial ally, one that can help you along the way to build and ultimately grow your business.
Organize Expenses and Data.
When you do apply for a small business loan, the lender will generally ask for financials, profit-loss statements, as well as many other pieces of information. Business owners are forced to pull their records together, thus gaining a more precise and comprehensive picture of where everything stands moving forward.
At First Union, we’d love to help you get the small business funding you need. With short-term loans, lines of credit, and merchant cash advances, among other such programs, we work with companies across the country. Call today to find out more!