When to Consider Funding For Your Business

Running a business takes a lot of hard work. The hard work ranges from managing your employees to making critical decisions that will benefit your business. One aspect of business management that you have to be accurate and careful about is your finances. This includes operating expenses, working capital, and other expenditures. Therefore, you have to keep track of your financial sources.

However, when dealing with your finances, things might not go the way you want it to. Normally, the profit from your business covers the financial expenses in running your business. But if your profit is not enough, it might be a good idea to turn to lenders and apply for loans.

 If you’re still not sure when is a good time to apply for a loan, here are nine situations where you may want to seek a loan from a lender:

When You Lack the Starting Capital

The foundation of every business is the starting capital. The starting capital for your business covers all the expenses that you need to start your business.

 If you’re in a manufacturing business, it will cover the expenses of the raw materials. For merchandising business, it may be used for purchasing the products directly from companies. In businesses involving services, it might go to the expense of hiring workers. If you lack the starting capital, it might be best to consider loaning.

Keep in mind, that different states have very different loan services. For instance, California business loans offer several programs to those who want to start a small business that lack the needed starting capital. Programs such as “California Jump Start Loan Program”, “Small Business Loan Guarantee Program”, and “California Capital Access Program” might be worth seeking if you’re in California.

However, you might want to consider your credit score when loaning funds. Having a bad credit score might hinder you from receiving a loan. If you have a bad credit score you will have higher interest rates automatically.

When Emergency Expenses are Present

Market fluctuations happen. In an unstable economy, the cash flow of your business might go up and down. These fluctuations might cause complications in your business and might prompt you to pull out cash from your pocket.

However, if you can’t afford emergency expenses that arise, it might be wise to turn to lenders. Short-term financing might be the best way to go. These loans cater to small businesses and span over a short period of time. But, watch out, because short-term loans have high-interest rates.

When You’re Ready to Expand Your Physical Location

Successful businesses leads to the expansion of your assets. Especially if you’re engaged in a service business, it might be a good idea to either rent a larger location or set-up different stalls in different areas.

Renting a larger location tends to attract more customers, because it leads them to believe that you have a booming business. A large place with fitting designs is sure to be an eye-candy for your target customers. Having different stalls is good too. This makes your product or service more available and accessible to your target customers.

So if you’re planning on expanding your business in terms of physical location, it might be useful to check out angel investors or high-end business loans.

When You Need to Hire More Skilled Workers 

Behind every successful business is a team of reliable staff and management. Having capable workers who can help your business grow is a must. When your business is expanding, you might need a larger team.

Recruiting capable people comes with a price. The more skilled a worker is, the more expensive it may be to hire them. So if you need more staff to help your business grow, it might be wise to find a suitable lender.

When You Lack the Working Capital

If you lack the working capital line of business, it might be wise to turn to lenders. Working capital is crucial in running a business. It covers day-to-day operations. This includes the delivery of raw materials, the electric and water bills of your establishment, and other operating expenses. Basically, working capital is what runs your business. 

Capital line of credit from lenders might be an excellent place to start. This involves borrowing money from a lender, that will give you a line of credit that is equivalent or exceeds the needed amount. A line of credit can become a great way to fund your working capital which may be extremely expensive. As a bonus, you won’t be charged for the unused credit of the loan.  


The more your business grows, the more expensive it is to run it. It is a good idea to turn to lenders, especially when you have a limited cash flow. As long a you’re careful with your finances, you can make the most out of the borrowed money to grow your business.


*** SPECIAL ALERT — July 25, 2020 — TWO of this Year’s Motley Fool Stock Picks Have Already Tripled and Two have Doubled! ****

We have been tracking ALL of the Motley Fool stock picks since January 2016. That’s 4+ years, 54 months and 108 stock picks. As of Friday, July 24th 2 of their 12 2020 stocks picks have already tripled (TSLA, SHOP). In addition, 4 of their 2019, 8 of their 2018, 7 of their 2016 and 10 of their 2016 picks have also doubled. Best of all, over these 54 months, the average stock pick is up 111%. That beats the SP500 by an average of 87%. And that’s even accounting for all of this COVID mess that has wreaked havoc on some stocks but presented opportunity for other stocks. THAT is how the Fool does so well!

  • Shopify (SHOP) – April 2, 2020 pick and it is already up 163%
  • Zoom Video (ZM) – March 19, 2020 pick and it is already up 107%
  • DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 26%
  • Tesla (TSLA) picked January 2, 2020 before the crash and it is up 123% compared to the SP500 -7% so it is ahead of the market by 130%
  • HubSpot (HUBS) picked December 5, 2019 and it is up 46%
  • Netflix (NFLX) picked November 21, 2019 and it is up 42%
  • Trade Desk (TTD) picked November 11, 2019 and up 111%
  • Zoom Video originally picked Oct 3 and it is up 234%
  • SolarEdge (SEDG) picked September 19, 2019 and it is up 44%

Now, no one can guarantee that their next picks will be as strong, but our 4.5 years of experience has been super-profitable. They also claim that since inception, their average pick is up 424% and now we believe them. You sure don’t want to risk missing out. Many analysts are saying that we have passed the bottom of this COVID crisis and stocks will recover quickly. So make sure you have the best stocks in your portfolio.

Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link

CLICK HERE to get The Motley Fool’s Stock Picks for just $99 per Year! 



Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW

(before it’s too late)

Leave a Reply

Your email address will not be published. Required fields are marked *