Every business needs extra funds at some point. Whether you’re hoping to remodel your store, expand to a new location or ensure that you’re prepared for cash flow timing problems, you’ll likely need a loan to get started. And to secure a loan, you’ll need to work with your banker.
Your relationship with your banker is essential to the loan application process, said Justin Squires, senior vice president and small business banking manager at Bank of America. The more your banker understands about you and your pharmacy business, the more productive the process will be.
Applying for a line of credit
The first type of financing you’ll likely apply for is a line of credit. No matter what stage of business you’re at, a line of credit is a valuable tool and a security measure. It will ultimately help strengthen your application for long-term loans.
“We’re always looking to have the maximum number of ways that a business can access credit and cash. We want to have you more liquid and less leveraged,” Squires said of the process at Bank of America. A line of credit is healthy for your business operations and helps establish trust between you and your banker.
Defining your goals
If you’re expanding or remodeling, Squires said that the key to a successful loan application is starting the process with a strong business plan and clear objectives. “The main thing that we always look at is the purpose. We want to match up the credit request and the purpose with the overall goal of the business and what they’re trying to achieve,” he said.
It’s important to let your banker know your immediate and future goals, what stage of business you’re in and how this loan will help you. The more your banker understands about your business, the easier it is to identify how the bank can help.
Helping your business
Ultimately, banks want to help you achieve your business goals. Squires said that he sees his role—and all bankers’ roles—in helping pharmacies and small businesses finance their growth as a way of contributing to a strong and healthy economy.
“The more we can contribute to that owner for that business, the more that we play a part in making things better,” Squires said. “If I can improve a business owner’s cash flow, and I increase that cash flow so that they grow and hire another employee, when they hire another employee, they’re helping their community. And when you multiply that out, now you’re helping the economy.”
A strong relationship between you and your banker will cultivate growth for your pharmacy and your community. “Create that partnership,” Squires said, “and it could be that impactful and powerful.”
