Should Your Business Seek Financing for the End of 2014?
When it comes to seeking financing, it can sometimes be difficult to know when is a good time to look for it and when it is more prudent to wait. Aside from a business owner’s own plans and the strength of their cash flows, macro factors such as the economy and season also figure in to deciding when is a strong time to seek financing and when it might be better to wait for a more opportune moment. With that being said, current economic conditions point to now as a time for small businesses to grow. In an article which appeared on Smallbiztrends.com, three compelling reasons were introduced as to why now is the right time for small business owners to seek credit, including historically low interest rates, improving approval statistics and the impending end of year which sees banks and businesses alike looking to work towards improving their final numbers.
What are your bank statements telling you about your business? In order to determine if now really is the time for you to pursue growth projects you may have been holding off on initiating, one indicator of readiness should be your business’s bank statements. Generally, if you are reporting month over month growth then that means you will appear as a strong candidate for capital to alternative capital providers, allowing you to turn your intention into funding that you can use in as little as one or two business days.
What is your competition up to? Another potential motivator for choosing now to apply for capital is the movement of your competitors. If they are preparing to make improvements towards the end of furthering their market reach and share, then it may be wise to keep pace with their development in your own business and build on your existing strengths while working on eliminating weaknesses. Even though capital can be accessed rapidly thanks to innovations in the way advances are underwritten, it may take a longer time to put improvements to your business into effect, especially if they involve licensing, construction or require the hiring of new personnel, such as purchasing specialized industrial equipment.
Is there a new market you are looking to tap into? One potential use of small business financing is reaching out to a new market during the end of the year. It can be an effective time to go after customers who research has indicated would be a good market for your products or services since the strongest sales months of the year are right around the corner and customers may be more inclined to investigate new brands when they are already primed to make holiday purchases. If your business has been planning to roll out new marketing, obtaining capital with which to fuel its reach and back up demand can be a strong strategic move coinciding with favorable economic conditions.
Photo Credit to Andrew Magill on Flickr