5 Signs That a Business Loan is a Smart Decision

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

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

Your Cash Flow is Sporadic

Do you have a seasonal business? You might make big profits during the holidays or summer but the rest of the year is lean. Additional funds can help bridge the gap during the slow seasons so your business doesn’t suffer.

You Need Equipment

Even with strong revenue, there might be an expensive equipment purchase you need to keep up and running. Instead of putting that purchase on a credit card or using another expensive option, consider a low-cost loan. The low interest rate and 10-year terms of an SBA loan can 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 that 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 might sound crazy. It’s actually crazy smart. Taking out a low-cost loan to pay off an expensive one is a great strategy to save money.

SmartBiz customer Milton Martinez owns Triple D Towing in Texas. By getting rid of two small loans, he’s saving between $15,000 to $18,000 dollars. That’s money he can put back into growing his business or into savings.

It’s Time to Expand Your Product or Services

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

Asha Waterstreet owns Tasteful Additions. Her shop in upstate New York sells gourmet salts and vinegars in store and online. Business was going well but Waterstreet knew she could up sales with additional products. She took out a SmartBiz SBA loan and was able to add luxury body products as well as tableware to her line up. Current customers bought more and new customers were attracted. If you have a strategy for success that depends on beefing up your offerings, a low-cost loan can help.

You’re Running Out of Inventory

SkateXS is a successful skateboard business in Southern California. Demand for their product skyrockets around the holidays. Owner Bryan Tracey tells when he discovered that he needed extra funds. “Our big challenge with SkateXS is the holidays. During Christmas, we can get over 10 times our normal orders in a single day. Somehow we had to come up with significant cash flow in August and September to get inventory ready.” Tracey actually had to turn off Amazon sales, as they couldn’t keep up. He came to SmartBiz and got a great rate on a $150,000 10-year SBA loan. They were able to sail through the holiday season this year in a much stronger financial position.

Getting Started

Lots of 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 much more likely to get you to a “yes” rather than a frustrating “no”. SmartBiz has brought the application online, streamlining the process so that it’s fast and easy to prequalify and apply.