We all need a little help sometimes and given the current state of the global economy that much has never been more true. If the COVID-19 pandemic has achieved anything, however, it’s that it’s made more of us sit up and realise how unsatisfied we’ve been in our careers. More businesses have sprung up in the wake of coronavirus than in any other time in recent history.
But if you’ve just set up your own business and are wondering how to take it to the next level, have you considered a business loan? It might be a daunting prospect to consider but it could also be exactly what you are looking for. Now that the worst of the lockdowns are behind us (finally), here is why taking out a business loan now could seriously improve your chances of riding the wave of economic growth that could be coming in this summer.
Applying for a business loan
You might wrongly assume that your business is too small to apply for a business loan, but any company can legally apply for a regular bank loan or working capital loan. That is why you need to ensure that you’re working with a company that is familiar with banking for professionals, since there is also no limit set to how many loans a business can take out. The business finance decision lies directly at the feet of your lender and is generally either secured or unsecured.
A secured loan secures an asset such as your home or something else of value against the loan. This means that if you are unable to repay the loan in the future the lender has the legal right to take possession of that asset to claim against what they are owed. This is often seen as a risky move but often yields larger rewards. An unsecured loan, meanwhile, is less risky as the lender is essentially taking you at your word. However, legal action might be pursued if you fail to pay the final amount.
What can a business loan achieve?
Anything you want it to. But we have decided to narrow it down to a few of the more usual suspects below:
If you feel as if you’ve hit the glass ceiling and are ready to break through it, sometimes a little extra financial help is all you need to push you there. This could be anything from moving to larger premises to investing in a new opportunity.
You can’t have a credit rating if you’ve never taken out any credit. Some businesses take out business loans simply to build credit and that is not a bad idea.
Equipment and inventory
If you don’t have anything to sell or the requisite equipment to actually achieve what you want to achieve then there’s no chance, you’ll ever scale your businesses successfully. That is why loans are often taken out by smaller businesses that need to bulk out their stock or equipment.
Finally, there might be a business opportunity with a timeframe that you simply can’t afford to miss out on. If you don’t have the funds yet but the window of opportunity is closing, a business loan could be the ideal solution.
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