Times are good. Your business just got a great story written about you in the local paper, your customers love you more than ever. Sales are up, costs are down, the business is humming just like you dreamed it would be. What now? Rest on your laurels and relax?
Now would be a great time to get a loan for your small business.
But wait, what? Why would I need a loan if my business is doing great?
Here’s the thing, your business is going to fluctuate, every business does. Just because you have some good things going right now, doesn’t mean a downturn is right around the corner. Not to make you paranoid, but there could be a competitor who’s about to unleash a killer product, or a sudden rise in material costs. The best thing you can do is be prepared.
Here’s three reasons why the good times are the best times to get a small business loan:
Your Business Looks Better Now Than In A Crisis
Your business looks great right now. With sales up and costs down, small business lenders are much more likely to extend you a line of credit or consider you for a loan.
Because you’re viewed as less of a risk, your interest rate is going to be a lot lower than someone in a crisis situation. A lot of business owners don’t realize there is a lot of different kinds of business loans. Now is a great time to see all of your loan options, because you’re going to have a lot more choices when the going is good.
In Crisis Mode, You Don’t Have The Time To Find A Loan
Imagine what would happen right now to your business if you lost half of your sales. What would your mindset be, how busy would you be? Does that seem like the best time to fill out a lot of paperwork?
Here at Lendio, we’ve drastically cut down the time it takes to get a loan, but it’s still a process that takes some of your time. If you’re needing the money by next week to keep your lights on and your doors open, it’s not only going to put a lot of stress on you, it also takes out a lot of loan options.
A Line of Credit Or Loan Provides Ease Of Mind And Builds Credit
If your business is doing well, you have a little bit of a buffer. Now imagine that buffer is increased by $50,000 dollars. How much better would you sleep at night?
Getting a line of credit established with a lender when your business is doing well is a great move that is going to keep your business healthy. A line of credit is great because you don’t have to use it, and you only pay interest on the amount you use.
If you decide to go with the loan route, you could use it to expand your business. Whether you invest it in personnel, equipment, or marketing, you could use that loan to build your business to a place where it’s running even more efficiently.
Remember, when your small business is doing well, banks and lenders are a lot more likely to get you a loan or line of credit. So while the going is good, get a small business loan.
And if the going isn’t great, don’t worry! There are lots of loan options that can help you get your business to where you want it to be.