As a small business owner, you know that having enough financing is crucial. Without it, you might not be able to remain operational, therefore putting your business’s future at risk. Luckily, that’s where additional business financing comes in!
Whether you’re interested in a small business loan, cash advance, SBA loans, invoice financing, credit cards, borrowing from friends and family, or another source of financing, it’s important to identify common issues that might call for additional business financing. If you find yourself in one of the scenarios included in this post, it might be time for you to apply!
You may require additional business financing if…
1. You’re low on cash flow
Cash flow issues can make or break your business. In fact, 82 percent of the time, cash flow management issues lead to small business’ demise. So, if your business is in a cash flow crunch, applying for business financing might be necessary. Once you receive your funding, you’ll have enough cash to put into the success of your business and won’t have to worry about missing payments on bills or payroll.
2. You want to expand your business
If your business is flourishing and you can’t keep up with customer demand, it could be time to expand your operations. Still, even if you’re making plenty of sales, you still might not be able to afford an expansion project. Whether you want to open an entirely new location or expand your existing space, you’ll need financing to complete these projects while keeping your business afloat. Luckily, there’s plenty of alternative lenders who are willing to work with business owners in this type of situation.
3. You can’t pay your employees
Running into payroll issues can be extremely stressful. Ultimately, if you stop paying your employees, they’ll stop coming to work. So, instead of scrambling to make ends meet (or missing payroll deadlines), consider available financing options. By receiving a loan, you can ensure that your current employees are paid, and you might even have funds leftover to use for hiring a few more staff members!
4. The quality of your products or services is declining
Cutting corners is never a good idea. Even though it might be tempting to save money on materials, labor, and other operational costs, customers will likely be able to identify a decline in the quality of your products or services. Instead, we suggest applying for a business loan. That way, you can maintain the quality of your business, without risking your finances to do so.
5. You need to make repairs, but can’t afford them
It can be nerve wracking when an expensive piece of equipment breaks, especially when it’s crucial to your business’s operations. For example, if a restaurant’s oven or freezer is broken, that could prevent the staff from cooking for their customers, thus affecting sales. Luckily, access to additional equipment financing would make it possible for the restaurant to get their equipment fixed, so that they can get back to business in no time!
6. It’s time to pay your taxes
You might think that you have plenty of time to pay your taxes, but the deadline will probably sneak up on you! Many small business owners struggle to pay their taxes in-full, while also affording company expenses. If you’re concerned about this, it might be helpful to apply for business financing so that you can pay your taxes on-time.
Bottom line: Invest in the future of your business
If you’ve found yourself in one of the situations mentioned in this post, it could be helpful to have access to business funding. Take time to conduct research, compare loan programs, and choose an option that makes sense for your company. You’ll thank yourself when you have financing that you can put towards your business’s future!
This guest post was written by Katie Alteri of Fora Financial