is debt the right strategy for your business?
Taking on business debt can be a valuable element of your overall financial strategy.
Evaluating the outcome will help you to understand if debt will ultimately benefit your business
Is Debt the Right Strategy for My Business?
As the owner or operator of a small business, finding the right type of loan to satisfy the goals of your business will be essential. Taking on business debt, much like personal debt, can be a valuable element of your overall financial strategy.
Often, the best place to start when considering loans is actually your endgame: What are you trying to achieve by taking on debt, and will there be a positive return on investment on anything you might use the debt to finance?
Evaluating the outcome will help you to understand if debt will ultimately benefit your business or hamper you. Here are a few additional details to consider.
Access to capital can help you grow
Many businesses look to leverage debt toward faster growth. If you are thinking about growth, the type of lending will partly depend on how much funding you need to take the next step in your business.
- Less than $5,000. A business credit card could likely fulfill your current needs — and might be easier to open than a line of credit or a term loan.
- More than $5,000. This is the minimum amount to open a term loan or line of credit at M&T Bank. Term loans can also be millions of dollars, depending on what you’re purchasing.