Small business loans can unlock many paths toward business growth. This blog takes a look at several of the most prominent ones.
Creating Emergency Funds
While setting aside backup money may not be the most exciting aspect of business growth, it’s nevertheless an important one. By using a loan to establish an emergency fund, you’ll set your business up to weather unexpected setbacks as it moves forward.
Normalizing Cash Flow
Steady cash flow is a key ingredient for business growth, but not all businesses enjoy it 100% of the time. For instance, many seasonal businesses have unavoidably irregular cash flow; however, bills and other financial obligations still come due whether money is flowing in or not. If properly managed, a business loan can somewhat regularize your business’s cash flow, letting your company grow even when cash is otherwise sparser.
If your business has significant debt already, it’s probably wise to move slowly before taking on another loan. However, in some circumstances, a business loan can help you consolidate debt, potentially reducing monthly payments and freeing up money for growth.
From salons to landscaping companies to design firms, almost every business needs equipment of some kind. That’s especially true when a company is looking to expand its operations. That’s why business growth often goes hand-in-hand with equipment financing—one type of business loan—which reduces the up-front financial sting of buying new gear.
Expansion means different things to different businesses, but it almost always requires money. For instance, activities like leasing or buying a new retail space, bringing aboard new employees, or launching a new product line are not free. They may become significantly more financially feasible when a loan bolsters a business’s resources, though.
Want to learn more about how new funding can help your business? Talk to Array Financial today.