Bensalem Bankruptcy Lawyer

Should one apply for a small business loan to grow his/her business?

It is true just because you can think of a reason to borrow for your business does not mean you have a good reason.

What are some justifying reasons?

One good reason for borrowing money to grow a business is your business is growing and needs more space. Maybe your plant has outgrown your office space or you need more space to handle inventory, personnel, and/or assets. Depending upon your situation, you probably cannot just snap your fingers and come up with more room. However, just because your business is ready to expand does not mean that you have the cash to do so. Financing a loan can get you the cash you need when you need it. There are questions you need to ask before getting a loan, such as whether you could cover loan costs and make a profit. You need to “crunch some numbers” to know how this loan would affect your bottom line.

Another good reason to borrow money for business growth is to build credit for your business future. It is sometimes harder for new/young businesses to qualify for loans because they do not have a verifiable credit history. However, getting smaller loans and making payments on time will establish and build your business’s credit standing for the future. Building your credit like this can also help build relationships with lenders, which will give you connections for when you need that larger loan. Be cautious about this loan because one late payment on this smaller loan can damage your chances of getting a bigger loan someday.

A third good reason to borrow money for business growth is that you need additional equipment to run your business. This can mean new technology or replacing old, worn out equipment. If you get a loan for equipment financing, you can sometimes set up the loan so the equipment can serve as collateral, like a car loan. One thing to remember when you are taking out a loan for equipment is that actual needs and wants should be separated. Employees probably want a margarita machine, but since you probably are not running a restaurant, it might not be the best use of your business resources.

A fourth reason to borrow money for business growth is that you want to purchase more product/inventory. This can especially be true if your business is seasonal or there are other cash flow problems. To know whether this borrowing would be good for your business, make some sales projections based on your sales history for that time of year. Comparing your projected sales to the cost of the proposed debt will help you determine whether a loan is a wise financial move. Lenders like OnDeck provide amazing rates. When making this prediction, you need to keep in mind that sales can fluctuate wildly from year to year. You do not want to borrow an amount that will not cover your projected sales and expenses, and you also do not want to borrow too much.

If you need help resolving a difficult financial problem, it may be the right time to ask an attorney about bankruptcy or bankruptcy alternatives. The sooner you start exploring your legal options with help from our trusted bankruptcy attorneys in Bensalem, the closer you will be to finding a solution to your issue. By acting quickly, you may even be able to stop your landlord from evicting you, prevent your car from being repossessed, or stop foreclosure on your home.

However, you should never rush into a major financial decision like bankruptcy or debt consolidation. Before taking any action, it is wise to review your legal options with a bankruptcy lawyer in Bensalem. Depending on factors like how much debt you owe, which types of creditors are owed payment, the age of the debt, your living expenses, the assets you possess, and your level of income, we can determine the most efficient course of action for overcoming your challenges and achieving your goals. Depending on each client’s unique financial background, Sadek Bankruptcy Law Offices offers an array of bankruptcy and debt relief services in Bensalem and the surrounding area, including:

• Bankruptcy for High Income Earners
• Bankruptcy for Military Members and Veterans
• Bankruptcy for Retirees
• Bankruptcy for Small Business Owners
• Chapter 7 Bankruptcy Services
• Chapter 13 Bankruptcy Services
• Debt Consolidation Services
• Debt Settlement Services
• Foreclosure Defense Services
• Mortgage Modification Services
• Short Sale Services
• Other Bankruptcy Alternatives

Instead of taking a generic approach to each case, we work closely with our clients to identify their specific financial hurdles. Once we have a clear understanding of the outcomes you are trying to avoid, or the objectives you are trying to accomplish, we can help you make informed financial decisions while managing and facilitating the legal process. From answering your questions to filing your bankruptcy documents – representing you before creditors to helping you compare state and federal bankruptcy exemptions – rely on our Bensalem bankruptcy attorneys to skillfully manage every aspect of your case.