6 Signals You're Ready for a Business Loan

June 9, 2019

Do you need money to make money? Growing businesses sometimes need loans to buy equipment, hire more staff, buy or make more inventory, or open a new location.

Timing is critical in growing your business, so here are some ways to know when you're ready to apply for a loan.

  • You have an opportunity that is time-sensitive. If your business is seasonal or you have been offered a large order you're not able to fill, a loan could help you maintain your current operations while taking advantage of a new opportunity. Using a business loan, you might be able to turn the limited opportunity into long-term growth.
  • The demand for your services or products is growing. Your customers are loyal, and your employees are too. If you have had a sustained uptick in your business or even had to turn business away to keep your current commitments, it might be time for a business loan.
  • Your business is currently strong. Businesses that are financially sound are able to take on more debt to grow. If your business is already financially strapped, it may be better to consider solidifying your foundation before looking for additional opportunities for growth.
  • Your business plan is sound. You've thought through the steps needed to grow and considered the possibilities, so you have a written plan and a timeline for the future and repayment of the loan.
  • The potential rewards outweigh the risks. You have the knowledge and expertise to turn a great idea into a good business opportunity. Your research includes an assessment of the financial requirements, market conditions, and industry aspects of a new project or plan for expansion. This information helps demonstrate that you're ready for a loan.
  • Your business credit report is positive. You may not even be aware that you have a business credit report because some of your information is based on public records. Like your individual credit report, make sure your business credit report is correct and complete. If you don't have any loans in your company's name, a new business loan that is paid in a timely manner can go a long way toward establishing your business' credit profile.

When you grow, we all win.

Each business is unique and has unique needs. And, the timing of your financial needs will vary as your business matures. Learn more about our business banking solutions. We want to learn more about your business to help you succeed, and our bankers are experts at finding the best loan for you and your business environment.

Guaranty Bank & Trust is one of the oldest and most respected banks in Texas, and we are here to serve you with any planning you would like to discuss with us. To learn more, come into a location today, or give us a call at (888) 572-9881.

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