When is the Best Time to Get a Business Loan?

Consider these scenarios before applying for a loan

10/3/2017 11:30:00 AM
Running your business is one of the most difficult tasks that you can undertake. There is a lot of risk involved in the process and sometimes you may need to make difficult choices. One such choice involves applying for business loan. While many people might view applying for a loan to be a rather risky move, it is often a necessary and a beneficial option if you are doing it for the right reasons.

When expanding a business

Your business venture may have started small. Those that are successful manage to grow at an exponential rate and with your growth can come unforeseen costs. Jared Hecht, CEO of Fundera and a guest writer for Entrepreneur.com, explains that many businesses will soon start to outgrow their initial surroundings, thus requiring a physical move to a larger location. A business loan can come in handy when you are searching for a new operating location.

When new equipment is required

When your business begins to grow, a physical location is not the only change that you may need. Much of your equipment and technology used during the organization’s inception may not be up-to-date. If your business wants to stay ahead, you need the latest equipment that your industry has to offer. That technology doesn’t come cheap, so applying for a loan may be necessary for your business to advance and keep moving forward.

When searching for new talent

One of the most costly endeavors for your businesses, in terms of both time and money, is recruitment. Injecting your business with new blood and fresh ideas is necessary for its survival, but it is also an investment that requires a good deal of funding. Therefore, if you are looking to expand your staff, you might consider applying for a business loan. Hecht argues that while the initial bill might be costly, the talent and productivity of new recruits will often make up for the cost of the loan in no time at all.
Determining the reasoning behind the application of a business loan is not only vital for a business, but for those companies that issue out such loans as well. Richard Harroch, a contributor for Forbes.com, states that groups that apply for business loans must be able to explain exactly how they plan on spending the money that they borrow. If a company is to flourish, it often requires a helping hand along the way. Business loans are designed to do precisely that, especially if they are used for the right reasons.
North Shore Bank’s business banking team can help you get the financing you need to help your business grow.

Published by North Shore Bank. Includes copyrighted material of IMakeNews, Inc. and its suppliers.

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