When is the right time to apply for a business loan?
You need money to make money. That’s an old-age fact of business. Unless you’re willing to give up massive shares of your business to investors, you’ll need an influx of cash to keep your business going and growing.
Let’s start off by defining the wrong time to get a business loan:
Do not wait until you’ve run out of cash. By then it may be too late.
The right time to apply for a business loan is well before your cash-flow has become critical. Manage your business finances proactively, plan ahead for seasonal lows, budget for growth, and apply for an unsecured business loan if it seems like you’ll need funds.
Every budding business needs resources to grow and succeed, and these resources cost money.
If you are planning on growing your business, these are the times you’ll require extra funds:
1. Purchase new stock
To meet projected increased customer demand, you’ll have to ensure that you have the inventory needed to supply your customers. With a quick business loan, you can get instant access to funds to buy this stock. Over time, profits from increased sales are likely to offset stock costs, but in the interim, make sure you can supply your customers.
2. Hire more employees
If you’re growing your business you’ll probably need to hire extra staff. Make sure you’re liquid enough to cover these additional payroll expenses.
3. Buy new equipment
When you increase productivity to grow your business and meet new customer demand, you’ll probably find that you need to upgrade your equipment. Whether it’s new laptops for your office, or new coffee machines and grills for your restaurant, bar or coffee shop, these resources will need to be paid for.
4. Renovate your space
Many growing retail businesses, restaurants, coffee shops and bars find that renovating their space helps to attract new customers. In fact, a study published in the American Marketing Association’s Journal of Marketing, showed a nearly 50% increase in retail sales following premise renovations.
5. Expand your location or add new locations
You may need to increase your space to accommodate for new customers, or you even may decide to expand to other neighborhoods by opening new premises in different locations. Either way, this physical expansion costs money so you’ll need to make sure you have the funds to do so.
Get a business loan now
Don’t hinder your business’ growth because of a lack of funds. Ensure you are liquid enough to fund your business growth by getting an unsecured business loan. Get the ball rolling and once you start increasing sales and profits, your business will probably naturally generate cash-flow itself.