Financing to Meet Your Business Needs
Choosing the right financing options to help you succeed
When it comes to deciding what type of loan is right for your business, you should first consider your needs and options.
How Loans Can Help You Meet Your Business Needs
The maturity of your business may influence the lending solution you choose, and the first step to finding the appropriate loan will be to understand your specific needs.
- Do you need capital to grow your business or fund an expansion?
- Do you need working capital to fund an increase in productivity or support higher demand?
- Are you preparing for unexpected expenses?
- Do you want to diversify your business by investing in real estate or acquiring another business?
You know that your business needs to start with operating accounts and the ability to accept and send payments. Then, comes the need for a credit card for daily expenses. But as your business grows, your needs evolve, and you might need loans to hire staff, develop new products or purchase or lease more space. Each need you identify will track to a specific lending solution—or potentially, multiple solutions.
How businesses start with credit
Business credit cards are typically the easiest loans to be approved for, so smaller businesses often start out by opening one to pay their expenses and build their business credit. There’s a need for a business credit card for every business, and there’s a need for a credit card and a line of credit for most businesses.
Business credit cards
A credit card is usually a revolving line of credit with a set limit and is meant to be used for those expenses that you’re going to be paying off at the end of the monthly cycle, such as travel costs and gas.
Line of credit
A line of credit is for your cash flow needs, such as meeting payroll and purchasing inventory. They typically allow for larger purchases than a credit card but are harder to get and depend on your credit scores and other factors.