July 20, 2023 By Kristin Woodward

We often hear the question, “If my business is profitable, why would I need a loan?” While it sounds counterintuitive, there are typically many reasons a thriving company may need additional funds to grow or save money.

Apply for an SBA Loan

If you’ve been in business for at least two years and have a strong credit score, you may qualify for a low-cost SBA loan with a 10-year term. Here are a few reasons a small business loan or grant may help your small business.

Your cash flow is sporadic

Cash flow and profit are two different things, and the two do not always go hand in hand. Do you have a seasonal business? You may make big profits during the holidays or summer, but the rest of the year is lean. You may be profitable, but without steady cash flow throughout the year, there may be times when it is difficult to cover costs like payroll or office space. Additional funds may help bridge the gap during the slow seasons so your business doesn’t suffer.

You need equipment

Even with strong revenue, you may need expensive equipment to stay up and running. Instead of putting that purchase on a credit card or using another costly option, you may want to consider a low-cost loan. The low interest rate and 10-year terms of an SBA loan may save you a bundle over other equipment financing choices. You’ll get the equipment you need without crunching cash flow.

SmartBiz® customer Randy Jacques owns Southern Utah’s The Tree Guy®. As his business grew, Jacques realized he needed additional equipment to keep up with demand. An SBA loan was the right choice for his business, and he’s now successfully expanding to other parts of the state.

What type of equipment would help keep your business running and growing? From a dental X-ray machine to vehicles to computer software, SmartBiz helps many small business owners with equipment purchases.

You’re drowning in debt

Are you dipping into valuable cash flow to make payments on high-interest debt? Taking on more debt may sound crazy.  However, taking out a low-cost loan to pay off an expensive one is often considered a great strategy to save money.

SmartBiz customer Claudia Gee owns Amazing Balloons by Gee® in Southern California. She and her husband secured a loan for $150,000 with ten-year payback. The funds helped them consolidate lines of credit and credit card debt and save big.

Before her SmartBiz loan, Gee was making total payments of $4,000 each month. With the SmartBiz loan proceeds, she was able to consolidate her debts and pay just $1,600 monthly.

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It’s time to expand your product or services

Is business humming along, but there’s growth potential? Adding merchandise or offering a new service may help take your business to the next level. Proceeds from a low-cost loan or grant may be used to help fund this strategy.

Enyermy Dominguez, a successful beauty entrepreneur, operates a successful salon in Orlando and recently launched an upscale line of hair care solutions, Enyermy Hair Solution®. Her products quickly became popular, and she needed additional capital to meet demand. With a $60,000 term loan from a bank in the SmartBiz network, she was able to expand her offerings, and her products are now sold across America, in the Dominican Republic, and throughout Canada. 

If you have a strategy for success that depends on beefing up your offerings, a low-cost loan may help.

You’re running out of inventory

Running low on inventory usually means business is good, right? But to keep up the momentum, sometimes a loan is exactly what you need to ensure you have the products your customers want in stock.

Maria & Victor Vargas founded Vargas Import Bikes® over 12 years ago in Laredo, Texas. While profitable and successful, Maria felt they’d need additional funds to stock up on inventory for the approaching holiday season. She says, “I called my bank before getting this most recent loan, and they asked for too much documentation. I returned to SmartBiz and they helped me a lot.”

SmartBiz helped them obtain an $88,000 SBA loan to bolster inventory for the holiday season, hire an employee, and to have working capital on hand. They are repeat customers.

Getting started

Many small business owners are skipping the bank and looking online for loans. What’s unique about SmartBiz is that we work with a number of banks and match you to the one most likely to fund. We’re working to help get you to a “yes” rather than a frustrating “no.” 

SmartBiz offers an online application, streamlining the process so that it’s fast and easy. See our current interest rates and find out if you pre-qualify without affecting your credit score*.

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