If you are a small business owner at the brink of a big expansion or in need of working capital for more inventory, a loan isn’t just an option: it’s a lifeline. Here are 10 smart situations where applying for a small business online loan is a smart move.
Your company needs financing, but research and due diligence puts your personal information at risk. The more options you consider, the more vulnerable you become. All lenders want to run your credit and access your personal information. Do not let them. Let Mayava find you the best rate available, safely and quickly without putting you and your company at risk.
Perhaps you’ve outgrown your office and your newest employee is working from a laptop on the couch because there just aren’t enough cubicles. Or maybe you own a dance studio and you have so many customers shuffling in and out for classes that your hallways are packed to the brim. Or better yet, maybe you’re a restaurant owner who has to turn away paying customers because you just don’t have enough seating. Moving to a new location just might be the answer you are looking for.
Business owners know all about the ups and downs of a seasonal company. Perhaps you’re a pool company that’s booming during the warmer months and you need capital to stay afloat when it’s colder. Or maybe you’re a costume company that does its best retail in the fall. Whatever your peak season is, extra funds might be necessary to keep things moving in the right direction.
Many businesses need specific pieces of equipment to function. Pizzerias need special ovens, medical offices need fragile instruments and large machines – and they all need updated technology. If your business requires certain IT or industry-specific equipment to perform daily functions, obtaining necessary financing through a loan can be a reliable option to help secure these expensive items.
Businesses always require inventory – it’s what you sell you make your profits, after all! Inventory is the most important part of what you do, and you should always have enough high-quality inventory in stock. As a business owner, you know just how expensive inventory can be, and if you’re a seasonal business owner, you know just how expensive replenishing your stock can really be during your peak.
Small businesses have a harder time than others securing loans. Because of this, scoring a loan for a larger amount may be more difficult, especially with little-to-no business credit and weak personal credit. In order to combat this, some business owners actually look to build stronger business credit by securing a small short-term loan and paying it off consistently. By doing so, owners are able to build up their credit for when they may really need it in the future.
Some business owners might find themselves stacking loans (taking out multiple business loans at one time.) Over time, the idea of stacking loans can weigh heavily on a business owner. Aside from seemingly drowning in debt, business owners have to deal with multiple lenders and a number of monthly payments, which can be daunting. Some owners turn to debt consolidation loans, also known as business loan consolidation, to turn their stacked loans in to one.
Sometimes exciting opportunities may arise that an owner feels that they need to take advantage of. These opportunities might include being able to purchase inventory in bulk at a discount, maybe you found an amazing new space at a reasonable price, or maybe there’s a sale on IT or other equipment you might need. During times like these, excitement might take over logic – so think about the pros and cons of taking out a loan for the opportunity - the revenue stream you might expect through the opportunity versus the debt, and make an educated business decision.
Refinancing your loan is something that you can do to lower your interest rate on your current loan. If times were tougher, or you had weaker credit, you might be bogged down with a high interest rate. Refinancing your loan to a lower interest rate can lower your monthly payments and save you money over the life of the loan.
There are times in every business where the need for more staffing arises. Whether your business is expanding or you are just taking on more work than the current staff can handle, hiring and training new staff can be an expense outside of your current budget.
Life happens. But when life happens in a business – it can be detrimental. If an unforeseen emergency comes up, whether vital equipment breaks, inventory is misplaced or so on, the need for fast cash might be necessary to fix the problem and get your business back up and running.
Though all businesses and circumstances are different, these 10 situations are very smart reasons to seek out a small business loan or business loan consolidation. But remember, always do your research, be smart, and shop for a consultative lending platform that isn’t just in it for the money: they’re in it to help you succeed.