MOUNT LAUREL, N.J., May 5, 2017 /PRNewswire/ -- Small business owners know a healthy business is a growing business. But when you're getting ready to enter a new market, launch a new service, or procure equipment, coming up with the necessary capital can be a challenge. A business loan or line of credit may be the key to growing your business and revenue. Before you approach a lender, prepare for this important step by following these three strategies.
Fine-Tune Your Plan:
When it comes to financing expansion, careful research is essential. Study your past sales, research your market, and look at your competitors to make sure your business is growing in the right direction. Take time to understand the obstacles and costs. These may include new expenses, a bigger workload for you and your staff, the challenge of bringing your business to a new market, or new competitors. This can show you where your strategy requires adjustment and may help you find the best time to begin expansion.
Forecast Expansion Cost:
An effective forecast will help you understand the price tag of your expansion. For example, if your retail business is opening a second location, determine your facility, staff, and inventory expenses based on your experience with your first location. Also, research the performance of similar-sized competitors in comparable markets. A new location, new service line, or other expansion may not become a revenue driver right away; set a realistic timeline for how long it will take this investment to break even and ultimately become profitable.
Watch Your Credit:
Securing the financing you need at the best possible terms requires a good credit rating. For many small-business owners, especially Sub S and sole proprietors, your individual credit is just as important as your business's credit. Staying current on all your accounts is essential. As you prepare to finance your business expansion, request your credit reports, so you'll know your personal and business credit scores. If there are any errors in these reports, contact the credit rating agency immediately.
The best financing option for your organization will depend on the size of your business, scope of your expansion, and capital needs. Lending options include:
- Term Loan: Ideal for a one-time expense, such as renovating or expanding your facility.
- Equipment Financing: Designed for big-ticket equipment purchases, such as manufacturing needs or IT infrastructure.
- Business Line of Credit: A useful solution for other short-term cash flow and working capital needs.
At Sun National Bank, we offer a wide array of flexible lending and credit solutions tailored to the needs of small businesses.
This article originally appeared on Sun National Bank's blog. Sun National Bank provides timely and helpful thought leadership to the business community. Small Business Matters and Commercial Insights are published by Sun National Bank to provide segment-specific information on a wide array of topics, including fraud prevention, technology, managing cash flow and more. The information contained herein is for general informational purposes only and does not constitute tax, legal, or business advice. You can visit the blog at sunnationalbank.com/blog
About Sun National Bank
Sun National Bank is the primary subsidiary of Sun Bancorp, Inc. (NASDAQ: SNBC), a $2.26 billion asset bank holding company headquartered in Mount Laurel, New Jersey. Sun National Bank is a community bank serving customers throughout New Jersey and the metro New York region. Sun National Bank is an Equal Housing Lender and its deposits are insured up to the legal maximum by the Federal Deposit Insurance Corporation (FDIC). For more information about Sun National Bank and Sun Bancorp, Inc., visit www.sunnationalbank.com.
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SOURCE Sun National Bank