Debt is Not Just a 4 Letter Word

By: First Union | Date:


Debt is Not Just a 4 Letter Word

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Contrary to what some may believe, taking on debt is not always a bad thing. Debt, in many instances, especially as pertains to the growth and stability of your business, can be an excellent option.

Think about it this way, as a thriving company you require cash flow not only to maintain your current level of operations but potentially to expand and diversify. Unfortunately, there may be times when you run into issues maintaining positive cash flow. Here is a situation in which taking on debt might not be a bad way to keep up with the pace of business and get yourself back on track. Assuming the right kind of debt is far better than falling victim to late payments or rapidly ballooning interest rates. Once you become locked in this type of vicious cycle, it can be nearly impossible to reemerge.

Sensible debt also represents a readily available avenue for growth. In the short-term, sometimes a loan or line of credit could mean the difference between being able to hire new employees and procure much-needed equipment versus merely remaining stagnant while your competitors pass you by.

Debt or Equity?

Rather than look into the option of borrowing and thus accruing debt, some companies instead opt to seek out investors. And while certainly, this is a viable solution, often the debt is far less risky and less expensive as well. With equity financing, you give up a percentage of your business, which in some situations may mean a portion of the control. Not to mention, there is the sheer hassle involved with finding investors, to begin with. Once you do identify viable candidates, their demands as far as return on investment may far exceed the rate which you could otherwise get via debt financing.

At First Union, we have a variety of options to help your organization grow, diversify, or simply get back to where you need to be so that you can productively conduct business. We would be more than happy to discuss our lending programs and identify that which might be a good fit for you!

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First Union Lending LLC is a dually licensed Lender/Broker with its main offices located at 4900 Millenia Blvd First Floor Orlando, FL 32839. First Union Lending LLC and its ads are meant for continental United States, including Alaska and Hawaii small business owners. Business Loans offered by First Union Lending LLC have varying rates and terms that can range from 30 - 120 payments and all rates and terms are based on eligibility of the business and its owners. The actual terms are based on credit, business history, industry, amount and terms. As an example, a $5,000 loan paid over 5 years at 8% would have a total repayment of $6,082.92 over the life of the loan. We use the latest encryption to protect sensitive information transmitted online, as well as run our own secure server network to ensure your information is protected offline as well.

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