Staples Wading Into Small Business Lending

Many small business owners across the country may think of Staples as being just another place to buy office supplies in large quantities. However, the major chain is now starting to branch out into another area of significant need for many entrepreneurs: extending small business loans.

One of the big issues that many small businesses have faced in the last few years – even after the end of the recession – is that access to credit remains extremely tight. That, in turn, makes it more difficult for businesses to grow if they seek financing through traditional lenders. A number of businesses have risen to the challenge in recent years to help many companies deal with these problems, and now the major office supply chain Staples is joining the rush, the company announced.

What does this mean for small business?
The hope behind Staples Business Loans is that it will give many companies with a source of funding that provides greater flexibility than what they might find at traditional lenders, the report said. That goes beyond the normal need for greater credit access, which is a common problem these days, and also extends to the kinds of loan options they actually provide to smaller firms. In all, there will be 20 different types of financing companies can take out.

“The new Staples Business Loans is an amazing service that we’re pleased to offer our small business customers,” said Alison Corcoran, senior vice president for North American stores and online marketing at Staples. “Along with our recently launched More Account, an account for purchases at Staples, it’s another great example of how we’re helping our small business customers manage their cash flow and financing needs. We’re focused on providing all the products and services small businesses need.”

Staples examined more than 30 financial services firms to help in this process before settling on one called Lendio, the report said. That company uses technology to partner lenders with borrowers that have a special eye for business financing.

When owners want their companies to be best positioned to succeed in a hunt for additional credit, having streamlined expenses is often of the utmost importance. For this reason, they might want to think about ways they can keep their costs down for things like small business insurance, including policies for liability insurance. That could end up saving them thousands of dollars annually.