If you are not sure whether to take a business loan, asking for advice can be met with a variety of opinions. Conservative business owners may say that a slow growth strategy can be the best option to avoid risk, while aggressive entrepreneurs will rush to seize opportunities and have the funds to grow quickly. Here’s a short list of reasons that can help you make the right decision for your enterprise.
New or replace equipment for your business
Equipment is an essential part of any business, it can make a difference in how your team performs and it can enhance the quality of your products or services. A long-term loan can be appropriate for larger purchases or larger quantities, but first run a revenue projection to avoid purchasing more than its needed. A business loan to finance equipment it’s easier to get as the equipment can serve as collateral for the loan. It is helpful to call different equipment vendors, bargain hunting pays off to minimize the amount of the loan.
So, your company just landed a new contract? Did you receive a large purchase order?. A short-term business loan can help you with new inventory to fulfill these new commitments. Have all on hand inventory information and all new POs when applying for an inventory business loan. The lender can use the inventory and receivables as collateral and can help you expedite the funding of your loan.
Expand or move your physical location
You may find yourself with a retail location that has an overflow of customers or an office that has no more space for needed additional staff. Well, that is good news, business is good, and not expanding can hamper revenues. Here a long-term business loan can be the right move. But you must carefully calculate the right option for you: move to a new location? Or add a second location? A revenue projection can guide you in the right direction. Also, make sure the increase in business is also enough to cover the additional payment associated with your new business loan.
Need for more talented staff
Competition is catching up or you urgently need innovation. In both cases, you need fresh talent, individuals with new ideas, with more experience, and more knowledgeable. But hiring at this level means a surge in your payroll and other administrative expenses. A short-term business loan can help your business navigate through the first few months while the new talent efforts take your business to higher revenues. A short-term business loan can also establish a good credit history with your lender, this way you can have fast credit available when needed.
Opportunity is knocking at your door
Maybe your competitor is in the market for a buyer, or there’s a new industry that is thriving and your business can develop a new product and take part the action. These are perfect examples where a long-term business loan can be appropriate. A longer term will provide your business with a larger amount of funds to seize a good opportunity and better leverage your business.
A business loan can also build your business credit that can facilitate larger financing needs.
For short-term and long-term business loans contact First Down Funding for fast approval and quick funding.
This post was written by fdfadmin