One of the most important things for small business are their small business loans. A small business loan is exactly what it sounds like – a loan designed to help a small business succeed in its business venture.
Traditionally, they work where the bank gives a small business owner money for the business and the business must pay it back in installments over the course of a designated period time. Over this period of time, the bank technically owns the business as collateral for the loan. There are other programs available, instead of just the traditional small business loan, such as the SBA 504 loan program where the loan is owned by three parties rather than one but offers better rates.
Business lending, be it an SBA 504 loan, a regional loan through Lewis & Clark Development Group, or traditional small business loans, is very important for both businesses and communities to succeed. Here are a few reasons why…
Benefit #1: They Allow You to Establish Your Business
Businesses cost a lot of money to start, which most people don’t have to cover the cost of before their business is up and running. For example, think about someone who is running a toy store. They need to pay for their space and inventory before they do anything else. That’s incredibly expensive, and they won’t be able to get off the ground without that boost from the small business loan that they acquired.
Benefit #2: They Provide Capital to Expand Your Business
There is a saying, “It takes money to make money.” This is true for any business looking to expand its operation. Oftentimes, businesses want to expand, but don’t have the money that they need to expand. The expansion would make money for the business but is limited by its current resources. The solution to this issue is a small business loan, which allows for the expansion to take place.
Small business loans, when used towards marketing, can also help to expand your customer base. The theory is similar. You already have a successful business, but to start earning more money, you need to market your business to potential new customers. This will drum up more business, allowing you to pay back the small business loan and make more money than you otherwise would have been able to make.
Benefit #3: Successful Local Businesses Help the Entire Town to Succeed
First, think about who is working at a small business: local residents. These employees who work for small businesses go home and are able to pay their mortgages, spend money at other local businesses, pay taxes, and contribute to their community’s economic and social vitality. For this reason, a town – especially a small town – thrives when small businesses grow. For this reason, small business loans benefit the community.
There are approximately 30.2 million small businesses in the United States. They are the backbone of many of our nation’s communities. The small business loans they rely on are vital to keeping them afloat and helping to keep people working.
Let Lewis & Clark Development Group Help Your Small Business
If you are looking into opening your own business or are in need of more money for your current business, make sure to contact Lewis & Clark Development Group at (701) 667-7600.