Business loans aren't just for companies that are struggling. Business loans are commonly used by startups or young companies to facilitate growth and expansion. Loans can also be used to handle the seasonal ups and downs of a business, pay for operating expenses, or help get a new project started.
At some point in every business's existence a business loan is necessary, with most entrepreneurs requesting funding at some stage in their business’ lifecycle.
Even some of the most successful businesses in the world occasionally take out business loans to deal with the often unpredictable nature of business cash flow.
To prepare for an upcoming Christmas season, for instance, retailers are often tasked with ordering enough product and shipping materials to handle a large number of customer orders.
During the month of December, these businesses realize they'll have a significant influx of cash, but in October and November, this cash is not yet available. By using a business loan, a merchant can access the capital it needs to stock up for peak times of year.
Learn more about business loans: