The Top Three Reasons Your Business Needs a Loan

The Top Three Reasons Your Business Needs a Loan

The small business lending environment has been experiencing a sharp uprising in the past few years since the end of the recession. This is not only good for business owners, it is also great for our local economy. Most businesses cannot survive on cash flow alone – in fact a good majority of business rely on small business loans to stay afloat. In today’s flux economic environment, a business loan is often the only option for a small business owner to help their companies grow and thrive.

There are many reasons business owners seek out financial assistance through small business loans, a few include: 

1. Inventory

Merchants have slow seasons and hot seasons – slow seasons precede holidays, making hard to stock up on inventory in time for the rush. Getting a business loan can give you the access you need to working capital to make sure you are fully stocked. Inventory loans are typically short-term and some banks even offer revolving lines of credit that help keep your cash flow positive.

2. Expansion

Expanding to new locations or just expanding your market reach takes a lot of working capital – but when your business is thriving, that is the best time to grow – because you can be sure that there is a demand for your product/service and that your profits wont decrease. But, you will likely need financing to make the leap to another location or broader market reach, as you also need to keep your core business operational. A business loan can help cover the expenses of expanding your business without taking a hit on your operational funds.


3. Equipment

Similar to the importance placed on inventory, no business can run without the proper equipment. Be it machinery, computers, kitchen supplies, etc. – you need everything to be in proper working condition to run a successful business. Equipment is pricy and does not last forever – as your equipment wears, you should look into equipment finance loans to help you with these kinds of unplanned expenses that can hurt your budget. Having up to date equipment is important because it gives your customers a better overall experience.

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