3 Reasons Your Business Might Need a Loan
on Friday, May 4, 2018
If you own your own business – whether it’s a new start-up or one that is well-established, at some point, you may find yourself considering a business loan. Determining whether a loan is the right direction for your business can be intimidating, however. That’s why Northwest Bank is offering a look at three reasons a loan may help your business.
Reason No. 1: Expansion
If your business is turning a profit and its future outlook is positive, it might be time to consider expansion. Expanding your business can come in different forms. You might need new equipment that can help you improve efficiency or new inventory that will expand your product offerings. Or you might just need additional or new real estate because you’ve outgrown your current location. A business loan can help you achieve any of these goals.
Reason No. 2: Build Stronger Credit History
Before you can take out a loan to expand your business, make sure your business has a strong credit history. Just like with your personal credit score, taking out small, short-term loans that you can easily pay off can help you build a strong credit history for your business. A loan could be for a smaller piece of equipment, a marketing campaign or to purchase inventory. The relationship build with your lender and the business credit history may help you receive better loan terms.
Reason No. 3: Increase Working Capital
Managing daily expenses of a business can be expensive, especially for new businesses that are working to turn a profit. With a working capital loan, business owners obtain financing that will help them through the early stages of their business. Such a loan can be used to cover costs related to inventory, staff or rent.
If you have decided a business loan is the right move for you, consider a visit with Northwest Bank to discuss your needs further. Even if you are not in the market for a loan now, it may still be beneficial to talk with a banker about your future plans.
To learn more about what a business loan can help you achieve, or to discuss financing options, contact one of our banking experts today!