The moment you decide to go out and seek funding for your business is a significant milestone in your entrepreneurial journey.
It’s easy to get caught up in the excitement of starting a new venture, but it’s crucial that you take the time to consider how seeking funding will help or hurt you.
You want to ensure that your business has the best chance at success, so you must weigh all of your options and make an informed decision about what kind of funding is right for your company.
When is the Right Time to Seek Business Funding
1. Your business is financially mature enough to take out a loan
If your company has been around for a while and has reached financial stability, then it’s definitely time to start thinking about taking out a business loan. This way, you can use the money to purchase a new commercial property and expand your operation.
However, it’s important to remember that there are certain criteria that you will have to meet before being approved for a loan.
2. You need extra space.
Whether it’s a larger office or more equipment, sometimes you need more space for your business.
This could be because you’re growing into your own business or experiencing major growth and need more space to accommodate that. If this is the case, it’s best to discuss your needs with a lender before applying for a loan.
3. When you need extra space
If your business is currently operating in a rented office or workspace, you may want to consider applying for a business loan. This way, you can use the money to purchase a new commercial property and expand your operation.
However, it’s important to remember that you must meet some specific criteria before you a lender accepts your loan request.
4. You want to start building business credit.
If your business doesn’t have any credit history, it will be difficult for others in your industry (including banks) to trust you with their money.
Taking out strategic loans and paying them back in good time is an excellent way to start building business credit.
5. You want more cash flow.
Most businesses require some level of cash flow to stay afloat; if you’re not generating enough revenue each month, then there’s no way that you’ll be able to make ends meet.
So if your business is struggling financially, it may be time for a financial boost through a merchant cash advance — especially if you need some extra funds immediately!
Funding can help your business move forward but timing is key! Poorly timed loans can put you in a debt cycle and threaten to bring down your business.