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3 Reasons Your Business Might Need a Loan

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Three Things You Should Consider

If you own your own business--whether it’s a new start-up or one that is well-established, at some point, you may find yourself considering a business loan. Determining whether a loan is the right direction for your business can be intimidating.

Here are three reasons you might want to consider a business loan:

Reason No. 1: Expansion

Expanding your business can come in different forms. You might need new equipment that can help you improve efficiency or new inventory that will expand your product offerings. Or you might just need additional or new real estate because you’ve outgrown your current location.

A business loan can help you achieve any of these goals.

Reason No. 2: Build Stronger Credit History

Before you can take out a loan to expand your business, make sure your business has a strong credit history. Just like with your personal credit score, taking out small, short-term loans that you can easily pay off can help you build a strong credit history for your business. A loan could be for a smaller piece of equipment, a marketing campaign or to purchase inventory. The relationship build with your lender and the business credit history may help you receive better loan terms.

Reason No. 3: Increase Working Capital

Managing daily expenses of a business can be expensive, especially for new businesses that are working to turn a profit. With a working capital loan, business owners obtain financing that will help them through the early stages of their business. Such a loan can be used to cover costs related to inventory, staff or rent.
 
If a business loan is right for you, contact one of our commercial bankers to have a personal conversation about your needs.

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