Running a successful business involves navigating financial challenges, capitalizing on growth opportunities, and making strategic investments. Whether you recently started a business or you’re a seasoned entrepreneur, it’s important to know when to seek out a business loan. Borrowing may be crucial to maintaining or even expanding your enterprise.
Is now the right time for a business loan?
You have cash flow issues
Is your business struggling to meet its financial obligations, pay bills on time, or maintain a healthy cash flow? Or maybe your business is seasonal with fluctuating revenue? If so, a loan can provide the necessary funds to bridge the gap until your revenue improves.
There’s a growth opportunity
Maybe you’re an artisanal hot sauce maker and a grocery chain just reached out because they want your products on their shelves. Or you’re an HVAC company looking to expand into other territories with a new fleet of vehicles. Whatever business you’re in, you need capital to seize a growth opportunity. A business loan can provide the investment needed to make it happen.
You need to make inventory or equipment purchases
If your business relies on inventory or expensive equipment but you don't have enough working capital to purchase or replace it, a loan can help ensure smooth operations. This can keep you competitive in your industry, as interruptions in your production may impact your ability to follow through for customers.
You have high-interest debt
If you currently have a business loan but feel like you can’t make a dent in it because of the interest payments, refinancing may be the solution. Consolidating to a low-rate business loan will make debt payoff less expensive. As a result, you may be able to pay off your loan faster.
There’s an emergency
Unforeseen events or emergencies, such as equipment breakdowns, storm damage, or sudden changes in the market may require you to come up with funds quickly. A loan may be the saving grace you need to weather the unexpected.
Before pursuing a business loan, it's essential to thoroughly assess your business' financial health and projected cash flow to ensure taking on debt is a viable and responsible decision. Then, search for a financial institution that offers competitive rates and great customer service. General Electric Credit Union (GECU) business members have access to our dedicated Business Services team. Their guidance and local knowledge will help you make sound financing decisions for your business. Fill out this form to get in touch.
