You might feel that you want to give your businesses every chance at success by waiting until you get into financial difficulty before seeking financing. While this might sound logical on first thought, your best shot at getting a loan from a financial institution is when you are working from a position of financial strength. In other words, managing the financial end of your business takes on-going review and planning to anticipate a future cash crunch so that you can seek financial assistance well in advance.
Although it could be possible to cover costs and cash flow gaps with personal funds, it often doesn’t make sense. Many successful business owners rely on financing of some type, whether it be debt, equity, or a combination of these and other options. No matter what kind of small business financing you choose to pursue, make sure that you explore all the options available. Discuss them with your financial institution well before your next cash crunch.