We have all heard it many times - to make money, you need to spend money. Like many small businesses, you might be finding yourself at the point where you find it necessary to borrow to continue to grow. Are you looking to purchase new equipment to increase inventory? Are you in need of a new or bigger commercial vehicle? When it comes to growth or borrowing funds, one of they key components to making it a beneficial business decision is timing.

Expanding your business for the right reasons at the right time is important in order to take its success to a new level. Here are a few signs that will tell you if your business is ready to undertake a business loan obligation:  

  • Financially Secure - It may seem obvious, but if your business is tight on cash, that is not the time to be looking into loans. Creating more financial obligations could do more harm that good. When a business is in a financially stable state, showing positive revenue growth and good prospects for future business, you may be in a better position to withstand additional debt (repayment of your loan). One critical aspect of your overall financial outlook that will be considered by possible lenders is your Credit Report. You will want to be sure that your credit report is complete and accurate.
  •  Business Plan - Before looking into any business loans, you must have a solid business plan. What does that mean exactly? Your plan should lay out where all money will be utilized, projection of your growth opportunities, and anticipated timing regarding use of loan funds. A comprehensive business plan forecasts when the invested money is expected to result in increased revenue and other growth measurable.
  •  Opportunity Presents Itself - Maybe at this point in your business, a larger-scaled project is presenting itself, or you have just received opportunity to differentiate inventory or services. You still need your current cash flow to cover the day-to-day expenses, so a business loan could allow you to take advantage of this new opportunity and lead to greater growth potential in the future.

These key signs are just viewing a business at the surface. Many different businesses need and utilize different business loans for different reasons. At Rhinebeck Bank, we offer an array of loans to support the individual customers we work with. From lines of credit, our Express Business Loans, to commercial mortgages, we will work with you to see if a loan is the best option, and if so, which one will help you grow your business reach its fullest potential.

To speak to a Rhinebeck Bank loan officer, please call us at 845-454-8555 or find a branch near you!

(Member FDIC, All loans subject to credit approval.)

Michelle Barone-Lepore

SVP, Marketing

Michelle Barone-Lepore - Headshot