4 Times A Loan Can Help Keep Your Business Thriving

When most people think about small business loans, they usually think about money to start a new venture. While the majority of loans that small enterprises take out are for exactly that, there are many good reasons why you should consider a small business loan long after you've opened your doors. Here are some of the most important reasons:

You Want to Expand

Has your business grown to the point that you're ready to take on a new element? It could be a new product line, an expanded retail location, or a move into a new geographic location. Whatever way in which your business could use some room to stretch its legs, you'll need money to make the transition. While a business could be profitable enough to warrant the additions, it may need some help funding that change.

You Need New Equipment

Large assets are hard for any business to fund, but they may be essential to keeping your company thriving. In fact, you may not be able to operate without some pieces of equipment. If you have heavily-used equipment that's been in use for five, seven, or even ten years, it may be reaching its life expectancy. For a fledgling business, this may not have been enough time to have the cash ready to fund a replacement.

You Had an Emergency

No business is immune to emergencies, and they are rarely anything you can fully prepare for. Has your business been hit by a devastating storm, earthquake, or flooding? Did you have a more specific emergency, such as a fire with uninsured losses? This doesn't have to be the death knell for your small company if you can get the funds quickly to rebuild and move on before you lose your customer base.  

You Need to Buy Out Someone

Partnerships are difficult — both professionally and personally. Did you begin your company optimistically as a partnership but now you need to go your separate ways? Buying out a partner means paying them for their share of the company assets, usually over a short period of time. If you can't quite swing that without liquidating too many assets, consider a loan to smooth this transaction and get your business moving forward again. 

Does your small business face one of these common financial needs? If so, don't hesitate to make use of small business loans. These loans are designed to help foster the entrepreneurial spirit of Americans even while facing unexpected tests.