7 Signs You Need a Business Loan to Grow Your Business

Top 7 Signs You Need a Business Loan to Grow Your Business

Commercial loans are a necessity for many businesses.

When used effectively, these funds can help businesses to solve problems and capitalise on opportunities. 

In other words, the right loan at the right time can help business owners to not just survive, but to thrive!

Here are our top 7 signs that you need a business loan to grow your business.

1. You Have Cash Flow Issues

Cash flow is crucial for any business.

Even when you are making a profit, you may still find yourself getting caught out with the timing of income and expenses.

If you’re stressing about paying your business bills or tax obligations on time, a commercial loan or line of credit can help you to manage your cash flow effectively.

2. You Need More Space

If your business is bursting at the seams, you probably need more space.

Cramped premises can impact both your staff and your customers, so try and give them a little breathing room.

 It’s common to outgrow your surroundings over time, which is where a business loan can come in handy.

A business loan can get you the funds you need to renovate and expand your existing space.

Alternatively, a commercial loan can help you to finance a move to a bigger premises that is more suited to the size and scope of your operations.

3. You Need More Stock

If you regular run out of stock and struggle to keep up with the demand for your product, you’re stifling the growth of your business.

This can be even more of a problem if your product has a busy time of year, where you need to up your stock count and make the most of the opportunity.

A business loan can help you to get the inventory you need to respond to customer demand and increase your sales.

4. You Need More Assets or Equipment

There’s nothing worse than realising that the money you’ve wasted on leasing vehicles or other equipment would have been enough to buy it outright.

If you have your eye on an asset and think you might use it long term, a business loan can help you avoid the leasing trap.

A suitable commercial loan will almost always be a better long-term option than the cheaper short-term alternative of leasing.

5. You Have Too Few Staff

Time is the natural enemy of many business owners.

If you’re trying to do too many tasks and there’s just not enough time, it could be a sign that you have too few staff and you need to delegate more.

Hiring more staff will help you to focus on the most important things and avoid burning out.

You may need a business loan to temporarily finance the hiring and training of these additional staff until they are paying their own way by generating more revenue for you. Or you might just need some funds to hire a contractor temporarily to get you through a busy period.

6. You Need to Refinance

Many business owners find that they can be financially better off by refinancing their existing debts into a single business loan with better terms and conditions, such as a lower interest rate.

This is known as debt consolidation.

Some also revise the term of their commercial loan when refinancing. This allows them to adjust their repayments so that they better suit the cash flow of their business.

7. You’re Missing Opportunities

You never know when a great business opportunity is going to present itself, and it’s easy to be caught unprepared.

For example, you might have an opportunity to grow your business by buying out one of your competitors or entering a new market.

You have the knowledge and skills to get the job done, but you are lacking the equipment and/or capital. Rather than just miss out on the opportunity, a business commercial loan can help you make the most of it.

Getting a commercial loan can ensure the strategic expansion of your business by enabling you to win the competition with other businesses.

At Quarles Business & Financial Strategists, our business and commercial finance professionals can help you to source the right business loan for your needs. We’re based in Perth and will take the time to understand your situation so that we can provide you with the right commercial loan advice.