When Is the Best Time to Get a Small Business Loan?

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When is the right time to get a small business loan? Well, that depends.

The right time might be when you expect to have a flurry of business and need to increase your inventory. Perhaps you need to hire more staff. Or maybe you’ll need a small business loan when you need to expand. On the other hand, maybe you’ll need a small business loan when you need some cash to cover unexpected expenses.

But there are other factors to consider as well. For example, variations among industries and business types can also affect how you search for the right loan and when you should do so.

Moreover, you don’t always have time to work through a lengthy loan process. Fortunately, fast business loans and funding can provide you with what you need in minimal time. You can get approval for your small business loan, often within twenty-four hours.

Let’s look at some of the various factors that can affect the time when you should look into taking out a small business loan.

 

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In the Healthcare Industry

People in the healthcare industry understand that patient volume ebbs and flows throughout the year. For example, many people try to cram all their visits into the last few weeks of summer vacation. That’s when kids need updated immunizations for school.

The back-to-school rush means more money for the business eventually. However, beforehand it means beefing up on new equipment or upgrading old systems. It also means paying for additional staff while you wait for your accounts receivable to be paid.

As a doctor, therapist, dentist, or other healthcare professional operating your own practice, you need to start thinking about funding these additional costs long before late summer. Therefore, start your loan search in the winter or spring, well before you need the funds, to be sure you have them available when the rush starts.

 

 

For Retailers

Many retailers see a spike in sales through the holidays. This means big business in November and December. However, you need to be ready well ahead of time for Black Friday sales, Small Business Saturday promotions, and Cyber Monday deals.

This holiday frivolity will need to be backed by extra staff working long hours. Naturally, your employees will be hoping for big paychecks or annual bonuses. But before the mayhem begins, you must consider how you’ll pay for all of the help you’ll need.

Applying for a loan in the spring or summer gives you the cash on hand you need to hire staff, keep your business open longer hours, beef up inventory, and update your website to increase online traffic and sales.

Other Factors for Retailers to Consider

Short-term loans, merchant cash advances, and lines of credit are flexible options to cover any extra costs you incur prior to your seasonal rush. The idea is that you’ll make the money back in holiday sales quickly. Therefore, you’ll be able to pay off the loan right away.

Analyze your past sales trends and look at other businesses in the area to figure out how much money you need to stay competitive. In this way, you’ll be able to accurately estimate your income and expenditures. This will help you to apply for a reasonable loan that won’t overextend your financial abilities but will be enough to get you through.

 

For Construction Businesses

Summer is construction season. The weather is finally nice again, and inclement weather doesn’t interrupt your work as frequently. It’s time to hang up your winter coat, dust off your boots, and get to work.

Applying for a construction loan in early spring allows you to lease new equipment, hire certified contractors, and cover the cost of the big project you just landed. Starting the application process early gives you the cash you need to prepare for the construction season. Additionally, it can supply you with enough left over to get you through the next slow winter.

If it took you longer to get up and running this year than last, and you didn’t have time to secure funding, short-term loans and business lines of credit are flexible. Moreover, some lenders fund them faster than they do other options.

 

In the Restaurant Industry

Restaurants don’t often see the spikes in business around the holiday season that retailers do. As a matter of fact, many people spend holidays at home, enjoying meals with family around their own dining room tables.

However, the problem for restaurateurs is that their expenses don’t decrease just because their business does. As a restaurateur, you must continue to find a way to cover the costs of servers, cooks, food, rent, utilities, and other overhead, regardless of how full your restaurant is.

Therefore, the best time for restaurant owners to look for loans is in the fall before business slows. Hopefully, however, you’ll have a surplus from a busy summer to carry you until you need to look at loan options.

You might also need equipment financing to help you buy new appliances. Additionally, a commercial mortgage could allow you to renovate during the slow season for a fresh look in the spring. You could also investigate a merchant cash advance. Then you can pay it back when business picks up again.

 

Don’t Hesitate to Look into a Small Business Loan Today

Don’t wait until it’s too late to look at loan options for your business. The right time is always today, not tomorrow. If you need it desperately, there’s no reason to delay. On the other hand, if you don’t need it now but know you will soon, it’s never too early to look into a small business loan.

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