Today, small business owners have multiple options when it comes business funding. The important thing is to avoid borrowing money too aggressively and without a sound basis. This article will tell you some basic reasons why should borrow now.
Business Funding: Borrow Now or Not
Did you know that 50% of business fail during the 1st 5 years and 66% during the 1st 10? Right planning, funding, and flexibility are the most important factors to help you success and not fail.
When it comes to funding, more businesses feel comfortable with online lending. Yes, this is a fact. Why? Online lenders are more likely to provide financing more quickly and without collateral. Working with a reputable business funding provider like First American Merchant, you can be sure to enjoy the cheapest possible rates and exceptional terms for merchant funding.
FAM is a true funding expert that specializes in the high risk space, and is dedicated to offering the best deal to both low and high risk merchants.
Before finding out when it’s time to borrow funds for your business, let’s see when it’s not time for this. Well, if you have problems with your credit, or your business is struggling to make ends meet, these really red flags to avoid borrowing now.
Reasons to Borrow Money for Your Business Now
Below you can find several basic reasons why you need to borrow funds for your business without waiting for a later period:
- Equipment, Inventory, Construction or Renovation Projects
Small business financing can help you with your current equipment or inventory, construction or renovation plans. By acquiring or upgrading your equipment and inventory, you can stay relevant and ahead of the competitors in your field.
- New Stuff
You might need to hire employees or have additional team members.
- Marketing/ Advertising
Marketing/advertising are crucial for the growth of your business, so this can be the right time to spend money on these.
Opening a new location or expanding requires certain capital. This is also true of launching a new product/service that typically requires an upfront investment. So, you can borrow money to pay for a new branch or spend on the development of new a product/service.
- Potential Profit Outweighing the Investment
If your potential profit from an investment is more than the risks, you can borrow funds so not to miss an opportunity that might pay off for you and your company in a striking way.
- Large Tax Bill
Sometimes, businesses are faced with a high tax bill from the federal government. Happily, borrowing can be the way out.
- Refinancing & Saving Money
Do you have some high-interest debt on credit cards or loans? Well, you can borrow money to consolidate the debt into a new, more affordable account.
- Real Estate
Acquiring real estate can be critical to your success. Thankfully, borrowing can help you with this.
- Larger Working Capital
You can borrow money to have working capital that you need to use for managing your day-to-day operations.
Any business can need funding. The important thing is to find the right business financing that can add to the growth of your business.