There comes a time when every business needs an infusion of cash. Whether your company is growing and business is booming, or some unexpected challenges have hit and you need an assist, a business loan can be a smart way to keep moving forward.

Securing a new loan can also be a daunting process if you don’t feel like you have a guide to help along the way. As a local business, we deeply care about our community and understand the challenges companies like yours face. Our team walks with you every step of the way, making a historically stressful experience much faster and easier.

How do you know when to get a business loan and when to explore other forms of financing? Here are some of the best times and reasons for taking out a loan:

1. Your business is growing

There’s nothing more exciting to us than seeing our customers grow their businesses. For you, this might mean you’ve outgrown your space, and you need to buy, build, or rent a larger one. Perhaps you need to remodel to accommodate and hire more staff. Sometimes it means acquiring an entirely new location to offer services to a growing customer base and reach more people in the Valley. When it’s time to expand, a business loan can allow your company to embrace these opportunities.

2. You need to purchase more inventory

If your business is seasonal or you expect sales volumes to increase greatly in the future (but they haven’t yet picked up), this can put you in a tough predicament. How can you prepare for anticipated growth when cash flow might be low or inconsistent? This is when a business loan can be helpful: as a bridge from one point in your business cycle to the next.

3. You need new equipment

New equipment is a must for businesses that need new manufacturing, scientific, or heavy equipment to expand into a new product or service line, or for any company that has hired more staff who need basic office gear like chairs, computers, printers, and the like. Business loans empower companies in this situation to give their employees exactly what they need to succeed and thrive.

4. You’re buying another business or investing in a franchise

When you’re planning a big, strategic move, such as buying a company or a new location, a large infusion of cash is often needed. A loan can help your business access funds to make this purchase possible and start your next chapter.

5. You have an unexpected, short-term need

All businesses experience ups and downs and surprises along the way. It’s simply the nature of running a company! However, these fluctuations can cause cash flow problems, such as when clients are slow to pay their invoices. A business line of credit, or an approved amount that a business can use as it needs (vs. a lump-sum loan), can be an attractive option to keep the lights on and paychecks flowing.

Here’s even more information from our team about when and how to get a loan:

We’re with you every step of the way

Whether you want to keep things running smoothly, start a new venture, or expand your company, having a local lender who truly understands your company and the market makes all the difference. Our team will guide you through all of your options, help identify and secure the best interest rates, and provide worry-free financing that makes sense for your company.

And of course, we’re here for all of your financial needs, not just business loans. Gateway Bank can help you navigate complicated questions, whether you’re in need of a CPA, a financial advisor, a lawyer, or even a broker to help sell your business. Our local network of professionals understands the unique challenges our clients face and how to overcome them — together.

If you’re ready to talk about a new loan for your business, contact our team to learn more, and keep this documentation checklist on hand to help you get your paperwork in order for an even faster, smoother experience. We look forward to talking with you!