Five Times Your Business Might Need a Loan or Business Credi

"It takes money to make money." How long have you been tired of hearing that particular gem? Unfortunately, while there might be a few exceptions, it is for the most part true. To make as much money as your business can make, it will have to invest some cash in the tools that will bring in more money. And that means a very special four-letter word: L-O-A-N.

When exactly does your business need to consider getting a loan? Small business counselors typically cite five specific times.

� You need a loan when first starting your business. This is the obvious one. How can you produce the first run of your product if you don't have the money to buy the supplies and processes? When calculating how much you need for start-up expenses, think about equipment, office supplies, salary for paid employees for the first couple of months, and vendor costs.

� You need a loan when you need to buy new facilities or expand the one you have. This is one of those good problems to have: As your business succeeds, you'll inevitably need more space to hold more inventory and more employees. Most businesses will need a loan to make this expansion happen.

� You need a loan when you branch out in new areas. The more successful businesses are always trying something new in order to stay a step (or two) ahead of the competition. So for instance, the local pizza parlor might decide to expand into other Italian cuisine. But to do so, they'll need new equipment. A loan will likely be needed to make this happen.

� You need a loan when buying new equipment. Most businesses underestimate what they will need in this area. An office-based business, for instance, might count on buying 10 computers--without thinking about replacement costs when one or more breaks down. You will constantly have new equipment costs, so hopefully you'll have enough working capital to take care of most of these expenses. However, you should also plan ahead for the day when you have more equipment needs than your current budget can handle--and be willing to seek a loan.

� You need a loan in desperate financial times. Unfortunately there might come a time when business slows down to a snail's pace. when that happens, many businesses need help just making payroll and paying essential bills. This is one of the gloomier times when you might need a loan, but it's one you need to be aware of.

So what are your options when seeking business capital, and where should you turn? Even in this down economy, there are numerous places that offer assistance in some form or other--some better than others. There are some services that exist solely to help you track down credit and funding for your business. Just remember that, if possible, you should seek out unsecured business lines of credit. Find someone who will help you find this unsecured credit--and make sure that they will guarantee you results, or your money back. If they're not willing to put their guarantee in writing, look elsewhere.

Arnold R. McIntosh

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