Why Take a Chance on a Small Business?

Why take a chance on a small business? Credit unions, with their focus on community, are perfect financial partners for small businesses, whether they are entering the marketplace for the first time or are already well established in the community. 

Small businesses form the fabric of our communities, bringing their neighborhoods the products, services, and solutions that impact life every day. As they support their families through their entrepreneurial spirit, they also employ others in the community, sometimes for generations to come. The challenges they face with cash flow and expense management can best be addressed by partnering with a local credit union, which can provide funding resources for growing their operations and guidance for maintaining financial health.

According to the U.S. Chamber of Commerce, there are 33.2 million small businesses in the United States. While these businesses may be small, their economic impact is anything but: Small businesses employ nearly half of the American workforce, create 64% of new jobs annually, and account for a full 43.5% of gross domestic product (GDP). Nearly all U.S. exporters (97.3%) are considered small businesses.

Small Businesses are Big Business for Credit Unions

Small businesses need loan products (credit lines, term loans, business credit cards) to launch, manage, and grow their interests and financial guidance to thrive. In return, they can become valuable, highly engaged members of your credit union. 

To help the small businesses in your community, start by sharing financial resources. The U.S. Chamber of Commerce offers a wealth of information, including basics such as registering a business name, opening an Amazon business account, keeping tax records, and more – valuable topics for your small business-owning members. 

To find small business owners, look to your own membership. Data mining can help identify those who may be using their personal cards for business purposes. As small businesses grow, owners may continue to rely on personal credit to purchase materials, run their day-to-day operations, and cover expenses. However, mixing personal and business finances on one card can complicate the tracking of expenses for tax deductions. For these members, a business credit card is especially helpful while they wait to be paid by their clients. 

In addition to separating personal from business, a business credit card program can offer expense management solutions to help owners operate effectively, including tracking monthly expenses, staying on budget, and preparing for tax time. It may also include features for controlling employee spending and monitoring spending across projects and departments. Most importantly, an expense management solution automates the manual processes involved in tracking, submitting, and reimbursing expenses – removing the burden of manually managing expenses and ensuring that records are kept up all year long (not just at tax time).

Credit Unions Are Here to Help

Small business owners may be hesitant to take advantage of loan products and invest in growth, and that’s understandable. However, for financial health, owners need to know what it actually costs to run their business – which is where credit unions can help with expense management solutions and education. 

When small businesses need help, credit unions should jump at the chance to help them thrive. Whenever possible, shop local to build a better community!

About Velera

Velera is the market-leading financial technology platform whose mission is to connect credit unions to the technology, strategic partnership, and scale they need to best serve their members now and into the future.