Mar 4, 2019 Should I get a business loan?
The word 'business loan' leaves a bad taste on a lot people’s mouth, but do you need a loan as a small business owner? And more importantly, should you?
Let’s all face it, getting a loan can be risky and could be expensive for a small business, but cash flow is always crucial to business operations. Here are some reasons why you should consider getting a small business loan:
You are ready for growth
Your business is finally getting there but you are stuck in the crossroad of expansion. Whether it be physical growth or sales growth of your business, taking out a loan is a huge investment. You might be thinking about moving to an office space or launching a marketing campaign, but need cash flow in order achieve those goals. Before you make any move, look at your revenue forecast to see how it would affect your operations for the next few months.
You need to purchase new equipment
One thing to ask yourself before taking out that loan for new equipment is if you really do need it. If you’re business is using outdated equipment which makes creaky noise every time you use it, then obviously you should take out a loan to improve efficiency. As a small business owner, you must think about your actual needs instead of your wants. Of course having the latest Macbook or standing desks would be nice but when you are in the lean phase, these might not be worth the investment.
You found THE business opportunity
When the golden opportunity pass by, you are not going to say no. Every once in awhile, there will be deals that are just too good to be true but your company just don’t have the capability to handle the order, that’s when you have to seriously consider the pros and cons. Make sure that you are basing your judgement off of forecasting and calculations, and not your gut instinct.
You need new hires
When you start you own company, you (and maybe your small team) are in charge of every single aspect of the business, from operations to sales, and you are literally doing the work of 10 people. With ten thousand things on your plate at the same time, not only will you crash and burn, your quality of work might also decline. Hiring the new talent is definitely a long term investment so make sure hiring the right person.
Find out How to get a small business loan here.
