If you’ve ever thought about applying for a business loan, you’re in good company. Every year, lots of small and medium-sized businesses apply for loans to help with expenses, with the average business loan adding up to about $663,000 in 2018. If you’re not sure if now is the right time to apply for one, look at these hints that the right time is now.
Business Is Going Well
You might assume that it’s best to apply for a business loan only when you’re struggling and need the money. But it’s actually better to do it when business is good. This way, you know you can pay it back—and so do lenders—making you more likely to get approved for the funds you want. So if business is good right now, it’s time to look into applying for a business loan at a nearby community bank.
You’re Ready to Grow
If business is going so well that you’re thinking of expanding so you can take on more work, a business loan may be right for you. Whether you need money to get a bigger office so you can accommodate more employees—or want to add another location—this may be a great time to get a loan. After all, most businesses need money upfront to cover expenses as they grow, so it makes sense to reach out to your local credit union to borrow the funds you need to tackle more opportunities.
You Want to Expand Your Product Line
Sometimes expanding doesn’t just refer to getting more space, but creating more products or services. If you want to make new products to sell or would like to increase the range of services you can provide, you’ll need money to get started. This is the perfect time to apply for a business loan, as it will allow you to make more money in the long run.
You Need to Upgrade Your Technology to Keep Up with Demand
If you’re realizing the technology in your office is outdated, it may be time for a business loan so you can update it. Whether employees have complained about your outdated point-of-sale system, or your customers have left critical reviews because of your slow website or app, it’s time to spend some money on technology. And as we all know, that can be expensive. That’s why you need a business loan to help you with the upfront costs of new technology as you work on improving aspects of your business to satisfy employees and customers alike.
You Have Good Credit
If your business credit is great, you have a significant chance of being approved for a business loan by your local lender. And the better the score is, the more access you’ll have to low interest rates. So, if you run the numbers, you might find it makes more financial sense to borrow money at a low rate than to use credit cards or other financing options to fund your business.