Is a Business Loan Right for You? 7 Key Questions to Ask First

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Taking out a business loan can be a powerful tool to grow, stabilize, or even save your business — but it’s not a one-size-fits-all solution. Before you apply, it’s essential to step back and ask yourself the right questions. Here are seven to consider:

1. What’s the purpose of the loan?
 Are you investing in growth (equipment, expansion, inventory), or covering short-term expenses? Your goal determines the best type of loan.

2. How much do you need?
 Overborrowing can lead to unnecessary debt, while under borrowing may limit your plans. Create a detailed budget or cost estimate before applying.

3. Can your business handle the monthly payments?
 A loan adds a fixed cost to your budget. Assess your cash flow carefully to make sure you can repay on time — even during slow months.

4. What’s your credit health?
 Your business and personal credit scores impact your approval odds and interest rate. If your credit needs work, it might be worth improving before applying.

5. Do you understand the loan terms?
 Interest rates, fees, repayment terms, and collateral requirements vary. Always read the fine print and compare offers.

6. Have you explored all financing options?
 Grants, investors, or lines of credit might better fit your needs depending on your situation.

7. Will this loan help grow your business long-term?
 A good loan should increase profitability or create value, not just cover temporary gaps.

THE APPROPRIATE FUNDING SOURCE

At AlignChance Financial, we’re committed to helping you borrow with clarity and confidence. If you’re considering a business loan, let’s talk about your goals and find the right path forward.

Investing in your business growth by providing the right appropriate financing.

+1–206–858–8316

hi@alignchancefinancial.com

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