In a perfect world, your business would never need a loan. You would be able to subsist—and flourish—entirely on your business’s profits, accomplishing all your goals without ever having to rely on investors or lenders. Unfortunately, for the majority of businesses, such a possibility is simply not realistic. Many ventures need financing or seed money to get off the ground, while others pursue loans to reach the next level.
Getting the financing your business needs isn’t always easy. Lenders—particularly traditional banks—are hesitant to give loans to small businesses or new ventures. At Peter Dunn Finance, we are here to help you through the financing process for your business. As business finance brokers serving Armadale, Fremantle and most of the Perth area, we will do the work to find you the right financing solution. But when is it the right time to pursue a business loan? We discuss some of the common reasons that business ventures come to us looking for help applying for loans below.
sThree Reasons Your Business Might Pursue Financing Opportunities
You want to expand: Maybe your business is growing so fast that your original location is no longer suitable, or perhaps you want to expand to new markets. In any case, if expansion is your goal, there will be some hefty expenses that you will need to handle. In addition to upfront costs—such as moving expenses or the costs of establishing your business in a new city—you will also see increases in your company overhead. Higher rent, the need for more employees and other factors will all affect what you are spending each month to keep your business running. Eventually, the hope is that your cash flow will increase enough to cover these added expenses—and then some. To get to that point, though, you might have to spend more money than you have, which is where a business loan comes in.
You need a new piece of equipment: At Peter Dunn Finance, one of the top reasons that businesses seek the advice of our business finance brokers in South Perth is the need for new equipment. Machinery, company vehicles, computers, servers, and software are assets that many businesses need, and they rarely come cheap. If you need a new piece of equipment—either to keep pace with changing industry trends or to keep your business growing—meeting with a business finance broker in Perth to discuss equipment financing is a good place to start.
You are running low on inventory: Sometimes, that old mantra about how you must ‘spend money to make money’ proves to be correct. Such is often the case when it comes to inventory. Whether you run a retail store, a restaurant or a construction company, you need a consistent supply of high-quality goods to continue operating. Usually, you will be able regular inventory orders without the help of a business finance broker in Fremantle, Armadale or South Perth. However, if you are ordering bulk materials for a busy holiday season or a major project, your business might not have the cash on hand to cover the purchase. A loan can help you purchase the inventory. Just make sure you weigh the cost of the debt (and the potential interest on the loan) against the potential sales or earnings on the goods you need to purchase.
Learn More about Business Loans: Schedule an Appointment with Business Finance Brokers in Perth
Does your business need financing—whether for expansion, inventory, equipment or some other expense? At Peter Dunn Finance, we are happy to sit down with you to discuss your situation and advise you on the best path forward. If you are interested in meeting with our business finance brokers in South Perth, Fremantle, Armadale or anywhere in the Perth metropolitan area, give us a call on 0427 947 480.