Providing great service and reducing expenses are some of the ways to help your practice thrive. However, like any business, you might find yourself in a “cash crunch” — when it becomes difficult to grow or maintain your standards of practice because of limited financial resources. Loans are important to businesses, because a lack of funds can weigh heavily on you. But with the right support and resources, you will be able to continue offering the best services to more customers. Here are six instances when getting a business loan would be beneficial:
Your practice might occasionally encounter challenges with payment collection. Everything from late payments and bounced checks to issues with proper billing can result in a tight cash flow. While it might be temporary, that doesn’t make it any less painful. Having the right financing readily available through a professional business loan can help provide more flexibility to your cash flow.
If you are not investing in new equipment, you might be limiting your revenue capabilities and the number of customers you can serve. Additionally, if equipment breaks down, expenses go up and profit margin goes down. Luckily, this is another way to use a business loan. With the right support, you will be able to prepare for these unexpected events, such as maintaining existing equipment and making new purchases, to stay current and competitive.
You’ve heard the saying: “You have to spend money to make money.” Buying a competing or complementary practice is a great way to immediately expand your business. It is the quickest way to onboard new customers and serve additional territories.
When you lease your office space, you are limiting your practice’s ability to expand — and thus the chance to grow its value. You can use a business loan to buy property. Purchasing a commercial property for your practice is a great way to grow your net worth by having better control on your properties.
Marketing and advertising your practice and services to the public can be expensive, especially as you grow your practice. Having additional financing will be useful, especially when you need to announce relocations, acquisitions, or new services.
If you find yourself or your staff stretched too thin, it might be time to consider hiring. Getting additional staff is not only a form of support to your current team, but also an indicator of the success and growth of your business.
At Cathay Bank, we understand operating your practice is costly and servicing your customers is your number one priority. With that in mind, we have created a Professional Loan program to focus on getting you where you want to go. Learn more about our Professional Loan.
This article does not constitute legal, accounting or other professional advice. Although the information contained herein is intended to be accurate, Cathay Bank does not assume liability for loss or damage due to reliance on such information.