Your business is thriving, but maybe it's time to take the next step and secure a small business loan if you need extra funds to expand your operations. Hiring new employees, upgrading technology, or expanding your space are all within reach with additional financial support!
To be successful in obtaining a loan from lenders, it's important to understand and present your business's financial picture. Your balance sheet is the first element they will review; having a debt-to-equity ratio between 1:2 to 1:1 shows signs of solid fiscal health.
Additionally, measuring current assets against liabilities (current ratio) can help prove stability; getting as close as possible to 2:1 or even achieving an equal match at 1:1 could significantly increase the chance of securing financing depending on aspects that are particular for each industry.
Lenders will carefully assess your balance sheet, comparing it to those of similarly sized companies. Cash flow can also be a key factor in their evaluation; net income and depreciation together create an overall picture of cash movement.
To secure the loan you need, present your potential lender with detailed information to get the process started. Make sure you show them what they require so that they have all of the facts necessary to make an informed decision. Not providing this information can delay — or worse, stop altogether — the funding you need to grow your business.
Ready to take your business to the next level? Hanscom FCU is here for you every step of the way. Reach out to our our lending team at CommercialLending@hfcu.org to learn how you can qualify for a loan tailored specifically to your needs.
When it comes time to expand your business, Hanscom FCU has got what you need!
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