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It goes without saying that a business must have strong finances to function smoothly and to grow. It also needs consistent cash flows to stay afloat in difficult times. However, as a business owner, you need to make tough choices related to finances every day.
Perhaps your business is surviving, but not growing due to lack of funds or maybe you’re seeing your cash flow dwindling due to unexpected circumstances (think COVID). What do you think is the best move at this point? Is this the right time to seek a small business loan?
We agree that seeking funding for your venture is a significant decision and quite a tough one. Nevertheless, it may just be the right thing for your business. Whether you want to expand it, sail through hard times, or keep moving in the right direction, external funding or a small business loan could be instrumental in realizing your goals.
When your business starts showing these six signs, its time to consider getting a small business loan:
1. You’re getting more business inquiries
Are you getting more prospective clients inquiring about your products or services than ever? Is your mailbox perpetually flooded with requests for quotes? If the answer is yes, it’s a clear indication that your business is in expansion mode and needs funding to grow.
To meet the growing customer demand, you may want to introduce a new service, upgrade your product, explore new geographies, or expand in the existing market. Whatever your decision, you will require a small business loan to finance it.
2. You have a tested idea just waiting to launch
It’s easy to get carried away with the excitement of a new idea. However, that idea is no good if it doesn’t address a specific problem or there aren’t customers vouching for it. If you have a product or idea that’s been positively tested on potential clients, the next step is to fine-tune it.
This is a crucial step before formally launching the product in the market, and you may need funds for it. It becomes a lot easier to convince stakeholders and get approved for a small business loan when you have a tested service or product backing your proposal.
3. Your business needs more human resources
Whether your business idea is technology-oriented or service-based, you need an efficient workforce to execute it. Perhaps you have qualified personnel working on your plans, but you need more people to address the growing customer demand. Or, let’s say you need people with specialized skills for a specific project. These are signs that you need a small business loan to afford the initial costs of onboarding recruits and expanding your capacity.
4. You need to offset slower revenue months due to seasonality
Every business seeks to generate consistent and positive cash flows over the long term. However, seasonality in demand may result in revenue fluctuations and eventually uneven cash flows. If you are operating in an industry with seasonal demand, such as travel, outdoor/adventure equipment, etc. financial challenges during non-peak periods are inevitable. So you may want to consider a small business loan to ensure that your company has enough funds to survive the low cash flow months.
5. You are planning to revamp your business
A potential reason for securing a small business loan could be your plans to revamp your business. In this age of cut-throat competition, innovation is the only way to flourish.
So, if you wish to remodel your restaurant, renovate the storefront, or upgrade your existing technology, don’t put your dreams on the back burner. Go ahead and get the required capital for the overhaul. It will go a long way in supporting the growth of your business and gaining a competitive edge.
Zinch, for example, provides cash advance and term loans that you can choose from based on your business requirements.
6. Your cash flow is in the red
Cash is the lifeblood of a business. If you’re struggling to make ends meet, cover upcoming payroll, or pay the next tax bill, it’s time you sought financing. Your business may not survive in such a scenario, let alone withstand expansion.
As morbid as it sounds, cash flow issues can be a death knell for your business, and this is the last thing you want. So it’s crucial that you opt for funding when there are subtle indicators much before your cash flow enters the danger zone.
Act now before it’s too late
If you have promising ideas but no resources to execute them, your business will hit a plateau. Small business loans can be critical in sustaining your business and fueling its growth. There’s no shame in seeking additional funding for your venture, and it’s crucial to stay mindful and identify indicators at the right time. When you’re ready to expand, grab every opportunity to secure adequate capital.
Contact us at (714) 500-6622 to learn more about your options. You could qualify for up to $250,000 in just 24 hours.
