When should you apply for a business loan? What does a business loan mean to you?
In the minds of a typical business loan applicant I have observed over the years is to seek funding when they are:
Most businesses that apply for a loan at this point have a bill or payment they need to make quickly.
Thi biggest hurdle here is how they can afford a loan? How can they manage repayments? More importantly, this is how a credit team will view your application.
This can certainly be a setback for an approval or if you are approved it may result in either less than you need or an expensive loan. All because you left it too late.
In my previouse role as a business development manager for a fintech lender often I saw unsuccessful applications. Had they applied week/s or month’s earlier, they would have been successful.
Planning is integral towards the success of any business. It enables you to seize opportunities quickly and fund your growth efficiently.
You can consider applying for a line of credit or overdraft product to give you that flexibility while acting as a cashflow buffer for your business. Business loans can be a contigency to top up your buffer. This will leave you plenty of room to apply for a loan leading to the occasion.