Securing a small business loan

By Marcie Geffner - Dun & Bradstreet

Some business owners can choose when to seek financing. Others must seek and secure loans and credit lines even when the timing isn’t ideal so they can sustain their businesses’ fast upward trajectory. A deliberate decision to avoid borrowing and keep a company smaller can sometimes kill momentum and result in lost opportunities. Or sometimes a business is faced with an unexpected challenge that puts a strain on the company’s cash flow.

A bank line of credit or short-term loan can be a good way to manage cash flow, purchase inventory or take advantage of seasonal demand. A short-term loan typically would be repaid within nine to 12 months while a credit line or business credit card can be tapped, repaid and tapped again.

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