MOUNT LAUREL, N.J.,
May 5, 2017 /PRNewswire/ -- Small
business owners know a healthy business is a growing business. But
when you're getting ready to enter a new market, launch a new
service, or procure equipment, coming up with the necessary capital
can be a challenge. A business loan or line of credit may be the
key to growing your business and revenue. Before you approach a
lender, prepare for this important step by following these three
strategies.
Fine-Tune Your Plan:
When it comes to financing expansion, careful research is
essential. Study your past sales, research your market, and look at
your competitors to make sure your business is growing in the right
direction. Take time to understand the obstacles and costs. These
may include new expenses, a bigger workload for you and your staff,
the challenge of bringing your business to a new market, or new
competitors. This can show you where your strategy requires
adjustment and may help you find the best time to begin
expansion.
Forecast Expansion Cost:
An effective forecast will help you understand the price tag of
your expansion. For example, if your retail business is opening a
second location, determine your facility, staff, and inventory
expenses based on your experience with your first location. Also,
research the performance of similar-sized competitors in comparable
markets. A new location, new service line, or other expansion may
not become a revenue driver right away; set a realistic timeline
for how long it will take this investment to break even and
ultimately become profitable.
Watch Your Credit:
Securing the financing you need at the best possible terms
requires a good credit rating. For many small-business owners,
especially Sub S and sole proprietors, your individual credit is
just as important as your business's credit. Staying current on all
your accounts is essential. As you prepare to finance your business
expansion, request your credit reports, so you'll know your
personal and business credit scores. If there are any errors in
these reports, contact the credit rating agency immediately.
The best financing option for your organization will depend on
the size of your business, scope of your expansion, and capital
needs. Lending options include:
- Term Loan: Ideal for a one-time expense, such as renovating or
expanding your facility.
- Equipment Financing: Designed for big-ticket equipment
purchases, such as manufacturing needs or IT infrastructure.
- Business Line of Credit: A useful solution for other short-term
cash flow and working capital needs.
At Sun National Bank, we offer a wide array of flexible lending
and credit solutions tailored to the needs of small businesses.
This article originally appeared on Sun National Bank's
blog. Sun National Bank provides timely and helpful thought
leadership to the business community. Small Business
Matters and Commercial Insights are published by Sun
National Bank to provide segment-specific information on a wide
array of topics, including fraud prevention, technology, managing
cash flow and more. The information contained herein
is for general informational purposes only and does not constitute
tax, legal, or business advice. You can visit the blog at
sunnationalbank.com/blog
About Sun National Bank
Sun National Bank is the primary subsidiary of Sun Bancorp, Inc.
(NASDAQ: SNBC), a $2.26 billion asset
bank holding company headquartered in Mount Laurel, New Jersey. Sun National
Bank is a community bank serving customers throughout New Jersey and the metro New York region. Sun National Bank is an
Equal Housing Lender and its deposits are insured up to the legal
maximum by the Federal Deposit Insurance Corporation (FDIC). For
more information about Sun National Bank and Sun Bancorp, Inc.,
visit www.sunnationalbank.com.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/advice-for-small-business-owners-from-sun-national-bank-three-tips-for-financing-business-expansion-300452130.html
SOURCE Sun National Bank