Leveraging capital is a great way to grow your business. Many loans are designed to jump-start your next big idea. Other loans are practical for hedging risk in large purchases.
Here are some things to review before taking on a new loan.
1. Will you be increasing sales?
2. Will this reduce interest expenses?
3. Will this allow you to invest in your business?
4. Do you have planning resources for these funds?
5. Will you be able to track the funds used?
Saying "YES" to any of these questions justifies more research in taking out a business loan.
Taking the time to set a budget with new loan payments is important - so is tracking a new loan to see how it can grow your business! We often educate clients on bookkeeping so that they see the results of loans for their business. Start-up capital is different than taking a loan up mid-way through your business life cycle.
Be mindful of your spending, create a plan for the funds, and track your goals. This is a great opportunity for financial coaching with Synergy Flagstaff - please reach out to us if you need any help planning or tracking your goals with business loans.