Did you know that small businesses generate 44% of the economy in the US? According to the SBA, they also create two-thirds of net new jobs, and are major drivers of competition and innovation.

Small businesses truly are the backbone of the economy and pillars in the communities they serve. But, none of this happens for free.

Growth for a small business takes more than just blood, sweat and tears. It takes small businesses funding.

5 times small businesses need funding

#1. To hit the ground running

Getting small business funding is difficult enough for established small businesses, but for brand new small businesses getting up and running can be even more difficult. That’s unfortunate because starting a business isn’t cheap, and most entrepreneurs need all the help they can get.

Startups need to be able to get the equipment they need, hire staff, stock up on inventory and spread the word — and these are just a few of the many expenses startups face.

Securing the right kind of funding is a key part of success for brand new small businesses looking to hit the ground running.

#2. To invest in the team

Small businesses are a major contributor to the US jobs market, creating two-thirds of net new jobs. But hiring is a lot more expensive than many people think.

First of all, it takes a lot of man-hours to spread the word about open positions, read through applications and interview applicants. And, if a small business requires an applicant to take a drug test and pass a background check, it’s even pricier. Furthermore, training new employees also takes time and money, as does continued education for existing employees.

Small business funding not only makes it possible to hire more people, but also gives you the resources you need to invest in your existing team.

#3. To offer new products or services

The more a small business can do for its customers and the better it can meet their needs, the more likely it is to get repeat business and reach its goals.

Branching out and offering new products or services can help a small business do just that. But, of course, that’s not cheap either. It means working with a new manufacturer or supplier, teaching employees new skills, investing in new equipment, etc.

The right funding option can help a small business do more for its customers by expanding its products or services.

#4. To invest in equipment and machinery

These days, small businesses face big competition. Not only do they have to compete with other small businesses in their industry, but also big corporations that often hold almost all of the cards.

In order to be competitive, small businesses need to be as productive as possible, which means that they need to have access to the same kinds of resources as everyone else. Tools and technology are essential for success, and like everything else, they’re often expensive.

With lending, small businesses are able to invest in the equipment and machinery they need to drive productivity, do more with less and compete.

#5. To relocate

There are so many reasons a small business may need to relocate. Maybe they want to hire more people and they need more office space. Maybe they want to be able to serve more customers, or they need more room to invest in new equipment.

One of the most expensive investments a small business faces in the midst of growth is real estate. Commercial real estate, especially in high traffic areas, is often out of reach for small businesses that don’t have financing.

Small business loans can make relocating possible for many small businesses, helping them expand and grow.

In other words, funding helps small businesses grow. Learn about quick and easy small business lending from Small Business Benefits™.