The decision to apply for a loan is just like any other important financial decision you might make with your small business in mind. There are plenty of wrong reasons to do it. However, there are also more smart reasons to do it than the average person is aware of. That said, if you’ve been thinking of taking your growing company to the next level, but know it will be a while before you’ve accumulated enough working capital to take action, you might want to consider the following ways the right loan can help.
1. Purchase Necessary Equipment
Most businesses are really only as good as the equipment they rely on for their daily bread. If you’re in the contracting business, the restaurant business, the manufacturing business, or any similar industry, not having the right equipment for the job could quite make or break your ability to satisfy customers and keep your doors open. However, even consulting, PR or publishing businesses need reliable computers, software, and tech-savvy office equipment to do their best work. Better, more efficient equipment is generally among the best reasons to apply for a business loan, as it quickly pays for itself in saved time and profits.
2. Expand Your Location
If your thriving small business is running out of room, you’re likely well aware of it. Maybe you’re having to turn paying customers away at the door simply because you don’t have the space to accommodate them. Perhaps you’d love to take on more staff to help out with increasing demand, but literally don’t have the room for even one more desk at your current office building. Those are signs that not only is your business successful, but that you should think about expanding as soon as possible. A small business loan puts physical expansion on the table immediately, meaning you can move out of cramped quarters and get back to growing sooner rather than later.
3. Act on a Golden Opportunity
Every so often, fortune really smiles on you and makes you a business offer you can’t refuse (and wouldn’t want to). Sometimes it’s a chance to take on a big, game-changer of a client that will really help your company go places. Other times it might look like a once-in-a-lifetime chance to snap up the perfect space for that second location you’ve been thinking about. Usually, such opportunities call for extra working capital that you may or may not have available. Not only can the right business loan let you jump on the next big chance that comes your way, but there are lots of fast lending options that can get you the funds you need within hours. In fact, some of the best options have delivered over $100 million in funding to small businesses just like yours to the tune of amazing results.
4. Hire a New Team Member
It’s not at all uncommon for a particular small business to start out as a one-person endeavor. When a business is brand new or still in the very early stages of growth, it’s often possible for that one person to personally wear every hat. However, there eventually comes a day when that’s just not feasible anymore. Whether building a team means taking on a bookkeeper or a marketing expert to help you with the nuts and bolts of running your business in the beginning or bringing on a couple of top-tier talents later in the game, you’ll eventually need a few talented helping hands at your disposal. If bringing on a new team member will make you more money than it will cost you in the long run, a loan is definitely a wise business decision worth considering.
Not only does considering a business loan at the right time open the door to a wealth of new possibilities for your small company, but it’s a great move credit-wise as well. Businesses need to build credit and show they’re a good financial risk to the same degree individuals do, so building credit now will help you down the line when and if you ever do want to apply for a traditional bank loan. Together, you and the right lending institution can help make your professional dreams come true. Get started today.