Whether a new startup or a few years down the road, your business matters. A financial cushion can help you build a profitable foundation and drive revenue. A business loan can help, but how do you know when its the right time to borrow?
Why Business Loans?
A business loan can make a big difference in your operations. It can help your business build credit. It can give you flexibility during busy times. It can help you navigate unexpected expenses with confidence. Do these needs sound familiar? They might — according to the 2017 Small Business Credit survey, 64% of companies experienced financial challenges within the past year.
But a loan can only help if you're prepared and if you've applied at the right time. Take steps today to know when a loan can make a difference.
Identify Your Goals and Challenges
As with any business venture, start by identifying your business goals or financial challenges. Having a clear vision will ensure that a loan can make a difference in the most effective ways. Especially if you're a startup (under 5 years), you might be looking to…
- Pay operating expenses
- Pay or increase wages
- Increase your credit line
- Purchase new equipment
Business loans can help with all of these goals. A clear plan is an excellent step toward getting a loan request off to a strong start.
Apply to Anticipate Needs
When it comes to business loans, it's best to apply before you need the equipment — otherwise, you might find yourself in a pinch or settling for higher interest rates. Likewise, if you're looking to make a leasehold improvement—that is, to make updates to a building you're renting — you'll want to be able to plan ahead so that such improvements don't conflict with your business's busy season or other obligations. No matter your goals, researching and applying for your loan ahead of time will help your operations move smoothly and lower in-the-moment pressures.
The Best Time for a Business Loan
Your business deserves its best opportunities. A business loan can help alleviate some financial pressures by increasing your credit line. By understanding your business needs and your industry's busy periods, you can prepare your finances and pave the way to effective operations.
Learn more about business financing options with BECU.