Orange County Small Business Loan Company
Small Business Loan Tips
When you are about to start looking for a small business loan for your business and you reach out for advice everyone you meet will have a story as to what might happen if you take out a business loan to start or expand your new business.
Every reason is not a good reason to go into debt for your business but that does not mean that good reasons are not an option on why you should take out a small business loan.
If your business is ready to take the next growth step or if you are looking to start a new business, but you don’t have the working capital to do so, here are a few reasons you might re-consider applying for a small business loan.
Ready to expand your business
You need more work space and your sales team has had to set up in the break room. Sounds like you’ve outgrown your office space.
You have a restaurant or retail location and you have to many customers coming in and out.
This is amazing! It means business is great, But just because your business is ready for expansion, doesn’t mean you have the cash on hand to make it happen like you see fit.
The best fit for you is a term loan to finance your expansion or move to a new location. Before you sign the loan documents, take the steps to ensure the potential change in revenue that could come from expanding your space.
Could you cover your loan costs and still make a profit?
Use a revenue forecast along with your existing balance sheet to see how the move would impact your bottom line and also do market research if you are expanding to a second location to ensure you will receive the right type of customer base.
2. Building small business credit
If you’re planning to apply for larger amounts of financing for your business, the case can be made for starting with a smaller, short-term loan in order to build your business credit.
This will help your small business and is a benefit of one of the small business loan options available by Peach Capital Funding right now.
This short-term loan may also help you build relationships with a specific lender, giving you a connection to go back to when you’re ready for that large business loan.
3. Needing equipment for your business.
Purchasing equipment that can improve your business is obviously a no brainer for equipment financing.
You need machinery, IT equipment or other tools to make your business or your business services run properly and you need a small business loan to finance that equipment.
Plus, if you apply for equipment financing, the equipment itself can often serve as collateral for a loan similarly to a car loan in the future for your business.
Consider this before you take out an equipment loan, make sure you separate the needs of your business from the wants when it comes to your operating costs.
Peach Capital Funding is here to help you along the way and we can provide you with knowledge and be a guide on your way to finding the right small business loan to help you start a business, expand a business or buy new equipment for your existing business.
Contact us now or fill out this form to speak with us about your business loan needs.