To continue with Six Reasons to Get a Business Loan Part 1, here are the last three reasons why one may want to consider applying for a small business loan:
4. You Are Building Future Credit – You may realize that you will need larger-scale financing for your business in the coming years. To build business credit, you might want to start with a short-term loan and make regular payments on time in order to qualify for larger loans in the future. Before applying for any loan, large or small, be sure that you can afford it first!
5. Your Business Needs New Talent – For small or startup businesses, employees tend to wear a lot of hats, but there comes a point where a small team is doing too many things. If the time has come to add to your team, taking out a loan to invest in the right people who can provide value to your business will ultimately expand your business for the better.
6. You Have Found an Opportunity that Outweighs the Potential Debt – Occasionally, an opportunity falls into your lap that you cannot pass up. Maybe you can order inventory at a discount or there is a great price on a building for a second location. Regardless of the opportunity, you should weigh the cost of the loan to the revenue that you stand to generate through the available opportunity. If the return outweighs the debt, we say go for it!
When considering any business loan, the point is after all the costs are factored in, is the loan likely to improve your bottom line? If you are unsure, call us! We are here to help to see if a business loan is the right idea for you and your business.
See Part 1 for more reasons to consider a small business loan.