Borrowing for Your Small Business

How Much Should You Borrow?

Bank loans are a source of capital for many small businesses. Loans may be needed for a variety of reasons, beginning with the fact that expenses and income don't always happen at the same time. By knowing the criteria that a bank uses, you will be able to go through the process in a manner that will be easier and quicker for both you and the bank.

This is an important question that revolves to a great extent on your cash flow situation. Some of the expenses that might need to be considered include buying supplies and inventory while waiting to get paid, paying payroll and rent, and buying equipment and fixtures.

Prioritize those areas where your options are limited to paying in cash, and review your alternatives where you may have other options. Then review what might serve as collateral for your loans.

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Investment and insurance products and services offered through INFINEX INVESTMENTS, INC. Member FINRA / SIPC. Heartland Planning Associates is a trade name of Heartland Bank. Infinex is not affiliated with the bank. Products and services available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of, nor guaranteed by, any bank or bank affiliate. These products are subject to investment risk, including the loss of value.
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