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Borrowing for Small Businesses Presented by Truist

Updated: Aug 29, 2022

Watch the video below or scroll down to read the recap

In this workshop, Truist representatives walked attendees through best practices of small business borrowing and topics such as understanding your financing options and the borrowing process.


Before You Jump In

You'll want to reference or download the Truist Borrowing for Small Businesses Guidebook before you review this class recap. Truist representatives walked attendees through the guidebook and how it can help you prepare for small business borrowing: https://bit.ly/borrowingguidebook


Be sure to take our workshop survey here: https://bit.ly/borrowingforsmallbiz


Workshop Recap

Why Businesses Need Funds - with examples

  • Grow business – drive sales (Open a new location, Launch a new product, Increase digital marketing)

  • Increase production or service capabilities (Automate/add equipment, Upgrade software/technology, Train additional staff, Replace a worn-out delivery van)

  • Boost profits (Shift sales from in-person to e-commerce, Take advantage of volume purchase discounts to lower costs, Increase staff productivity)

  • Manage cash engaged in the business (Consolidate debt, Build inventory for busy seasons, Handle seasonal cash requirements, Secure funds for one-time/unplanned expenses)

Note: On page 3 of your guidebook, note some actions your business could take beside the outcomes.


Where to Find Funding

  • Business Cash Reserves: PROS - Inexpensive, low-risk source of funds, Flexibility to use profits and retain control of the business. CONS - Accumulating reserves can take time, and Limits cash availability for emergencies or other needs.

  • Equity Investment by Owner: PROS - Primary source for startup/early-stage businesses, Quick access to funds. CONS - Requires additional cash from owner personal funds, and May create personal financial stress.

  • Equity Investment from external Source: PROS - No repayment schedule, Potential industry experience and connections from investors. CONS - Owners may give up control and future profits, Investors expect a higher return.

  • Borrowing: PROS - Often lowest cost form of outside financing, Owners retain control, equity, and profits. CONS - May not be available for new business or