Signs You’re Ready for Small Business Financing
Many businesses can do with extra working capital from time to time. The thing is, you might not have a pressing need for funds at the moment, but it still may be the right time to apply. Believe it or not, not having an immediate need for money could be the best time to obtain business financing. If any of the situations below sound a lot like yours, you may be ready to fill out an application.
Your Current Location Feels Cramped
If things are beginning to feel a little cramped in your current storefront, it may be time to start thinking about a bigger location. You can obtain a real estate loan if you control your business entity, which you can then use to buy a new storefront, office space, or business-related real estate.
You Can’t Keep Up with Demand
Expansion doesn’t always mean that you need a new location. In some cases, it means that you need more inventory or more hands on deck to fill orders. In such cases, a loan or line of credit can be just what you need. You may also consider equipment financing if what you need is new equipment to keep up with demand.
Your Off-Season Is Right Around the Corner
Generally speaking, the best time to apply for financing is when you don’t need it. While it sounds counterintuitive, it can be beneficial for seasonal businesses. Think about it. When you’re busy, you’re making more money, so your income and financial statements look better. During slow seasons, on the other hand, your statements might not make a convincing argument that you can repay a loan. Lenders are more likely to look favorably on you if you’ve just come off of a profitable period, so you’re more likely to be approved.
You Have a Can’t-Miss Opportunity
Sometimes, opportunities knock. If they’re too good to pass up, you’ll want to jump on them ASAP. Without sufficient funds, however, you might be limited.
If you have a once-in-a-lifetime opportunity before you, a loan or line of credit can help. Be prepared to show a potential lender just how you’ll use the opportunity and how it’ll help your business thrive.
Don’t wait until you’re in dire need of additional funds before you apply for business financing. The last thing you want is to have to wait (possibly up to a few months) to get approved and receive money when you need it now. With planning, you can have the financing that you need in place when you need it most.