Have you heard the saying “You have to spend money to make money”? If you have, you should know that it’s true. If you want your business to grow, you have to be willing to invest money in equipment, inventory, and expansion, to reap the benefits in your revenue.
But coming up with the money to keep up with these investments can be tricky. That’s where business loans come in.
Business loans can help you finance changes in your business. Instead of paying costs upfront and waiting for your business to grow, a business loan can help you grow your business while keeping money for the day-to-day costs.
Keep reading to learn why you should consider getting a business loan, the types of business loans we offer at Blue Copper Capital, and how to get started.
Types of Business Loans
Depending on your business goals, several different types of loans are available to you. They include:
Secured Business Loans
A secured business loan is a loan that is tied to an asset for collateral. These loans are a good option if you need money to cover large purchases, such as inventory or equipment. There are actually several types of secured business loans, including:
- Business equity loans
- Secured term loans
- Equipment loans
- Secured lines of credit
Each of these loans offers different benefits. To find out which type of secured business loan would be best suited for you, please contact us!
Unsecured Business Loans
An unsecured business loan is a loan based solely on your business’s creditworthiness. Because of this, it doesn’t require collateral and isn’t tied to your business assets. These loans are a good option if you need money to cover more minor business expenses or don’t have the business assets required for a secured business loan.
Short-Term Cash Flow Loan
Short-term cash flow loans can get you money quickly. These loans don’t require assets as collateral and are instead given based on your business’s past and forecasted cash flow. Short-term cash flow loans are best if you need cash quickly during a time where you anticipate quick growth.
5 Reasons to Get a Business Loan
If you’re interested in growing your business, a business loan can help get you there. The top five reasons to get a business loan include:
You Want to Expand
A business loan can give you the opportunity to expand your business. Growth costs money, and whether you’re looking for money to cover marketing costs, new property, or renovations, a business loan can give you the funds you need.
Business loans can help you cover the expenses of expanding your business without putting the money you have to cover operations in jeopardy.
You Want to Increase Your Inventory
Managing inventory can come at quite a cost. It makes it even more difficult if you have to invest in inventory before you’ve made much of a profit.
To grow your business, you’ll need to continually invest in your inventory to keep up with your consumer demand. If you don’t have enough inventory, you may not be able to provide your customers with what they need, at the rate they need it.
By taking out a business loan, you can stay ahead of your customer demand with the peace of mind that you’re not hurting your cash flow.
You Need Cash Flow
Maintaining a steady cash flow can be a challenge for any business. A business loan can provide you with the money you need to keep your business afloat.
Having a steady cash flow can help you keep up with:
- Daily operations
- Purchasing inventory
- Paying employees
- All other operating costs
A business loan can provide you with the money you need to keep your business afloat while bringing in new customers.
You Want to Invest in Equipment
Equipment is expensive, and it may need to be updated or replaced over time. Proper equipment helps you do your job and keep your customers satisfied.
Sometimes, investing in equipment can be unplanned. Don’t let the stress of broken equipment mess up your budget. A business loan can help you cover the costs of equipment replacement so your business can get back to running smoothly.
You Want to Improve Terms for a Future Loan
Business loans are a regular part of owning a business. However, if you’re planning on using a larger loan to grow your business in the future, you can help yourself by taking out a smaller loan first.
Starting with a small loan can help build your business’s credit profile and help you qualify for better rates in the future. In addition, taking out smaller loans can be a great strategy so that if you ever need to purchase something big, you can get a larger loan with more ease.
How to Get a Business Loan
If you’re interested in getting a business loan, you should know there are specific requirements you’ll have to be prepared for. Preparation is key to making getting a loan a quick and efficient process.
While every lender may have different requirements, the majority of them will require the following:
- A detailed business plan
- Information on your business assets
- Cash flow projections and financial statements
- Your personal credit score and business credit profile
- Details of your personal income, tax returns & insurance policies
Get Started Today
At Blue Copper Capital, helping you grow your business is our business. To learn more about your business loan opportunities, please contact us today!