As your new business transitions from a startup venture to a growing investment, is now the right time to seek out a business loan? The answer may be yes. In fact, doing so now, even if you aren't hurting for money, helps your business make this leap in several important ways. Here are a few of these. 

1. Build Your Company's Credit

Your business needs to build a good credit history just like you do as an individual. Without good credit, your business will have greater difficulty obtaining credit that isn't dependent on you as a person. The only way to build credit is, of course, to borrow money and show you are a low-risk borrower. Business loans are an inexpensive and manageable way to do this. But you should get started now in order to have time to build that history. 

2. Get Money Easier

It may seem somewhat counterintuitive, but lenders like to loan money to customers who have some already. The period between the start of a new company and when it invests in expansion is a time when you're likely to have the best cash flow and assets on hand. These help you qualify for better loan terms. Later, when you are in more desperate straits, you may find it hard to get that capital. 

3. Stabilize Cash Flow

When you first start out, your cash flow can be chaotic. You might often be robbing Peter to pay Paul as you build a customer base and develop operations. But now that the company is maturing, it's time to smooth out that chaos. Having more cash on hand means you stabilize your cash flow by replacing the ups and downs with a single, simplified payment. 

4. Pay Off Early Debt

How did you get the capital to start your enterprise? Many entrepreneurs use their own money, rely on personal credit cards, get loans from friends or family, or turn to riskier loans with higher rates. Now that you're on your feet, Consider paying off some or all of these. You can get rid of higher-interest debt and resolve personal loans from those you love. Instead, turn these into a standard business loan. 

Where to Start

Are you new to business loans? Start by learning more about them. Meet with a business loan program in your state today. They'll help you find the right solutions to solve all your capital needs and take your company to the next level.