You probably know several successful business people who decide it was time for a business loan one day and the next day their business took off. You may also know people who decided it was time for a loan and absolutely regretted it down the line, so how do you really know when it’s time?
You would be surprised at how many people in your life will have an opinion on you securing a business loan. So who do you listen to? How do you know the time is right? Well, despite having probably dozens of people to discuss these things with, the real answer is you need to know when the time is right for you and your business, which is often easier said than done. Moreover, it is important to remember that the people you should be listening to are those with your and your business best interest in mind, which may or may not be other people in your industry.
Clearly, the best option is to speak with your potential lenders, your business attorney and your accountant since this is not an everyday kind of decision. But, nevertheless, you more than likely came here for some clear cut guidance so let’s get to it then. For starters, the best way to know if it is time for a business loan is to ask yourself, why you are even considering securing additional financing in the first place? Are you not sure? Well, then back away from the application.
Typically, there are at least six good reasons to get additional financing for your business and they include your company or business is ready to expand its physical location, you want to start actively building credit for the future, you are in need of additional equipment for your day-to-day operations, you are interested in purchasing more inventory, your business needs fresh talent or maybe you have stumbled upon a business venture that you simply cannot miss as the benefits will ultimately outweigh the incurred debt. Ultimately, this is when it is in your best interest to seek additional financing. Of course, that’s not to say these are the only reasons but rather the most beneficial reasons.
Deciding it is time for a commercial loan or more financing is obviously a big step that if taken wrong can make or break a small company. Thus, it cannot be stressed enough that in order to stay successful as a small or larger business you need to take your time with this decision. Remember, the main and only goal of securing additional financing for your business should be improving your bottom line. If you can clearly see that this financing will help you achieve that goal then by all means full-steam ahead.
With that being said, you still want to ensure that you will have the ability to pay back your secured additional financing when the time comes regardless of the outcome. So, be confident in your business decisions but remember to always be thinking long-term.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.