Some entrepreneurs have never borrowed a dime, and believe it or not, that can hinder your business's growth. Bankers and other financial advisors say there are four crucial times when small businesses should seek a loan:
- When it's time to hire new employees,
- When you're trying to increase long-term sales,
- When you want to increase market share, and
- Â· When you'd like to take advantage of suppliers' early payment discounts.
If this sounds like you, or if you simply need money to pay bills, pay off creditors or improve cash flow, a loan may be your answer. But it's important not to take on too much debt. Check with your financial advisors to make sure you're not taking on more than you can handle.
Excerpted from Get Smart! 365 Tips to Boost Your Entrepreneurial IQ