Taking a business loan can help you transform your company and take it to the next level. But while securing funding will allow you to cultivate your business and help fuel growth, many business owners get overwhelmed by the loan process. Luckily, taking a business loan doesn’t have to be a daunting task. Below, we break down the ins and outs of business loans and explain how we can help you secure exactly what you need to succeed:
What Types of Business Loans Are There?
There are several different types of business loans such as term loans, lines of credit, equipment financing, invoice financing, merchant cash advances, and bridge loans. Each one is good for different scenarios.
When is the Right Time to Take a Business Loan?
When trying to decide if now is the right time, consider the following:
- What is your current cash flow like?
- Are you ready to scale now?
- What future plans do you have for your business?
- Do you have a lucrative opportunity to take advantage of?
- Are you struggling to pay bills and other expenses?
It’s a good idea to take a business loan when you have a plan in place for the future. On the other hand, sometimes emergencies arise without warning and you’ll need a quick influx of cash to fix broken equipment or recover from a natural disaster. Both situations are appropriate scenarios for taking a business loan.
What Are Some of the Reasons to Take a Business Loan?
A company may choose to take a business loan for several different reasons. Here are a few:
- To Stock Up on Inventory
It can be challenging to have the capital necessary to stock up on an adequate amount of inventory to keep up with demand or to prepare for busy seasons. Fortunately, business loans allow you the flexibility to secure the product you need, without tying up all of your capital in inventory.
- To Expand Your Business
Thinking about expanding your business to a second location, moving to a larger building, or adding additional products or services? A business loan can help you secure necessary capital to scale your business.
- To Help Manage Cash Flow
Is your cash flow somewhat unpredictable? Do you have a tough time fulfilling orders or have to wait a long time to collect on unpaid invoices? If so, a business loan such as a bridge loan, working capital loan, or small business line of credit can help.
- To Purchase Equipment
Replacing broken or outdated equipment is a costly expense. Unfortunately, these expenses always seem to be unplanned and to come at the worst time. If you need to fix, lease, or purchase equipment for your company, a business loan may be the key to helping you stay afloat. New equipment can be considered anything from production equipment to delivery trucks or even office computers or construction equipment. More efficient equipment will increase your productivity and help you boost sales.
- To Hire More Staff Members
Feel like your business is understaffed and could benefit from some extra hands? Or maybe you have to hire additional employees for your busy season, but don’t have the necessary capital. Either way, a business loan can help you secure extra talent to keep business running smoothly.
How Can I Pick the Right Business Loans For My Company?
Before you decide what type of business loan is right for your company, you should consider several factors such as whether you’d like long- or short-term financing, if you want immediate access to cash whenever you need it, the repayment terms, the application process, and the purpose of loan. At Business Owls, we ensure that every business loan is custom-fitted to the specific requirements of each client.
Navigating the business loan waters can be tricky, but we can help. For more information about how to select a business loan that best fits your needs, email us at INFO@BUSINESSOWLS.COM or click here to speak to one of our recommended business loan experts.