Often companies pursue business loans because they need cash for buying new equipment, or they may be trying to weather a downtime; sometimes small businesses are looking for funding for specific projects such as an office remodel or to roll out a new product. And certainly, trying to secure financing for things like this is important to the overall success of your company. However, what many organizations don't consider is that looking for a business loan when they don't need the money can also be a smart move to make.
The question is why…Why should you get a business loan if you have no project in mind or a specific need for the funds? There are quite a few good reasons for securing a commercial loan…
Building Credit. Nothing helps establish business credit like paying back a loan on time. So you procure funding, you now have extra cash on hand to give you a bit of breathing room, plus you can pay it back quickly and establish an excellent credit record in the process.
Low Interest. If you already happen to have a stellar credit score and a solid financial history, then odds are, if you do apply for a loan, it will come with favorable terms. This means that the money you borrow will probably have a low-interest rate. Why not then take advantage of being able to utilize "cheap" money.
Increase Working Capital. It's probably safe to say that most companies, even if they are in a good financial position, can always use more working capital. This enables you to pursue projects and other initiatives that perhaps you hadn't thought about; now with a business loan in place, you can expand the scope of your plans.
We'd love to help you get the small business funding your company needs. With short term loans, lines of credit and merchant cash advances, among other such programs, we work with organizations across the country. Call today to find out more!