In the hustle and bustle of operating a small business, there are times when help is needed in the form of a business loan. Typically, within the first two to three years of business operations, product and/or service offerings are validated and proven out by the marketplace. In the event that the business is able to attract demand and then to sustain and grow it profitably, there will come the inevitable need to get a business loan in lieu of obtaining private equity from investors. Why does this happen? Well, for one, the speed of cash received does not equal the speed of cash spent. Not all the time, but most of the time, the business becomes quite efficient in spending cash by providing a product and / or service, but does a poor job in recouping cash spent in a quick and efficient manner. As the business gets better at doing business, this inequity in the cash flow cycle¬†smooth’s out.

Thus, business loans are understood as one of the necessary blocks to building a solid business. Not if, but when the time comes to take your business to the next level whether in satisfying growing demand for your products and / or services, taking advantage of business deals with tight deadlines, or paying off old loans with new loans with better terms, make sure you are ready to make the case.