REASONS TO GET A BUSINESS LOAN
After you consider the competition out there and you decide that your business is ready to take a leap, several reasons might be re-consider. The following aspects will be appropriate to move ahead and apply for a small business loan considering you don’t have the working capital to do so. These reasons may include:
1. Expansion of your physical location.
You’re likely ready to expand when business is booming. But the biggest problem is that you don’t have the cash on hand to make it happen. At this point, you may need a business loan to finance your big move. But before you commit to a loan, measure the potential change in revenue. Determine, what could come from expanding your business space. By the help of a revenue forecast, and along with your existing balance sheet measure how the move would impact your bottom line. Also, research the area to make sure it’s a good and a perfect fit for your target market.
2. You’re actually building more credit for the future.
Start with a smaller and short term business loan in order to build your business credit. This will be a good plan to apply for large-scale financing in the future. Build your business’s credit by making regular, on time payments and have a strong credit history report.With the help of this tactic, you may build relationships with a specific lender.
3. You need equipment for your business.
You need to purchase equipment for your business like machinery, IT equipment’s or any other tool to perform your services effectively. To achieve all this at some point, you need a loan to acquire these equipment’s. But before you take out an equipment loan, the bottom line is to separate the actual needs from the nice to have. Otherwise, that particular equipment you have purchased may not be your business’s best investment.
4. For the purchase of more inventory.
With the growth of any business, inventory is one of the biggest expenses. However, you need to replenish your inventory with the demand of both plentiful and high-quality options. See a return on the investment first before purchasing large amounts of inventory. Create a sales projection based on past years’ sales to measure whether this is a wise financial move for your business. This helps to determine whether taking an inventory loan for your business is a wise financial move or not.
5. A business opportunity that outweighs the potential debt.
When an opportunity falls into your lap, weigh the cost of the loan as compared to the revenue you stand to generate through the available opportunity.If the potential return on investment opportunity outweighs the debt, go for that loan. But ensure to be very careful with your calculations. Don’t overestimate profits as a product of over enthusiasm. Ensure also to weigh the pros and cons.
Looking to get a business loan? Best Credit SG Pte Ltd is here to help you with your problems. As a legal moneylender in Singapore we can customize a loan just for you. Drop us a messageor call us at +65 6272 5538. Drop by our office for a free consultation @ Blk 372 Bukit Batok Street 31 #01-374 (Level 2) Singapore 650372