Is Your Business Struggling? Consider a Small Business Loan

Top10 StaffByTop10 StaffMar. 05, 2019
A Loan Can Help Struggling Businesses
Despite business owners' hard work, there can be times of low cash flow that are out of your control. Take a look at loans and funding options that can improve your business' financial outlook.

Balancing business income with expenses can be rough if you’re facing a pile of bills or a decision about the future of your company. The regular costs of doing business can eat into your profits, leaving little remaining to cover unexpected payments or invest in growth. If your market still looks good, a business loan can make the difference between closing your doors and pulling through a difficult period to become profitable again.

A small business loan might be a good option for you if you want to:

  • Ride the waves of a dry season

The economy is in constant flux, and even successful businesses will feel the pinch at times. With a loan to support cash flow, you can ensure your company makes it through these dry bouts until the revenue starts coming in again.

  • Restock a seasonal business 

Some businesses only see revenue during specific times of the year. The rest of the year, operations might be minimal or nonexistent. During those times, it can help to take out a loan to prepare for the upcoming seasonal boom.

  • Take on new staff 

During an upward trend, you might find it beneficial to expand your employee base to increase productivity and profits. New hires not only need to be paid but also insured for workers’ compensation and health care depending on the size of your business, so you may need a loan to cover these additional costs.

  • Purchase new equipment

If your company is enjoying a boom, it can be a great time to invest in equipment that will increase productivity or efficiency. Upgraded equipment can allow you to serve a greater number of customers.

  • Expand your operations or open a new branch

When a company is seeing success, it’s a great time for expansion and an ideal reason for taking out a loan. You know your business model works, and you'll be able to show success to your potential lenders. 

  • Remodel your current location

Even if you don’t need a bigger space, refreshing the space you have can give your business a boost by improving the atmosphere and stirring up interest among customers. If your space is turning people away, a remodeling loan can help draw the positive attention your business needs. 

  • Launch a new marketing campaign

Whether it’s your yearly holiday sale or the grand opening of a new location, bumping up your marketing efforts with the help of a small business loan can bring in more customers and get you more sales. It can also free up your time, so you can focus on customer service and strengthening your product or service over sales. 

What You Need to Think About Before Borrowing

Break down your needs for this funding prior to submitting applications with lenders. Draw up a concrete business plan. If this is your first time creating a business plan, it is a good idea to meet with a financial advisor who can help walk you through the steps and walk you through the expenses or fees that you might not know about and guide you in building a solid, realistic, plan.

You’ll need to know how much money your company requires to meet its goals. Otherwise, you may find yourself deeper in debt when the loan funding runs out. Analyze past performance and cash flow, and use this information to make projections for the future. Take marketing and conversion statistics into account so that you understand how customers are behaving now and how many new customers you can expect to gain in the future. Knowing how much money your company is likely to bring in over a given period of time shows you whether you can handle the payments on the loan size you need.

Know Your Options

When approaching lenders to ask for a business loan, it helps to know some details about the lender in order to tailor your application for fast approval. Get details about loan sizes, term lengths, interest rates, and approval requirements, comparing each option to the analysis you made of your budget. Ask about qualification requirements and the fees or penalties associated with the loan. Once you decide on a provider, read all of the terms carefully or have a lawyer look them over before signing any final paperwork.

Give Your Business The Funding It Needs

Give your company the chance at success it deserves by getting in touch with one of the leading loan providers available to you. Remember to explore all the options, ask questions, and be discerning when choosing a loan provider. For more educational resources, read more articles about business loan funding. 

Top10 StaffByTop10 StaffJun. 18, 2019
Our editorial staff is comprised of writers who are knowledgeable about financial services. We specialize in simplifying the process of choosing the right business loan lender for your needs.