With so many financing options available, how do you choose the right one for your business? Start by asking yourself these 5 key questions to help guide your decision making process.

1. What are My Financial Goals and Needs?

Identify why you need financing and what you're trying to accomplish.

• Purpose: Are you financing for expansion, new equipment, or working capital?

  
  

• Amount: Calculate the exact amount needed to achieve your goals without overextending your resources.

  
  

• Timeline: Determine when you need the funds and for how long.

  
  

2. How is My Financial Health?

Evaluate your business's current financial situation to understand which financing options are available to you.

• Creditworthiness: Check your personal and business credit scores, as they impact eligibility and terms.

  
  

• Financial Records: Prepare updated income statements, balance sheets, and cash flow reports.

  
  

• Cash Flow: Ensure you have the capacity to meet repayment obligations without straining operations.

  
  

3. What Level of Risk Can I Tolerate?

Assess your comfort level with potential risks involved in financing.

• Collateral: Decide if you're comfortable using assets to secure financing.

  
  

• Debt vs. Equity: Would you rather take on debt or share ownership through equity financing?

  
  

• Repayment Comfort Level: Assess your ability to handle regular repayments, even during slower business periods.

  
  

4. Have I Researched Financing Options That Align with My Needs?

Explore various financing solutions that match your specific requirements and risk tolerance.

• Consult Professionals: Seek advice from financial advisors or accountants for personalized recommendations.

  
  

• Industry Programs: Look for financing options tailored to your sector or business type.

  
  

• Lender Reputation: Research potential lenders to find those with favorable terms and reliable support.

  
  

5. Is my Application Strong?

A well-prepared application will increase your chances of approval and may help you secure better terms.

• Business Plan: Develop a comprehensive plan outlining your business model, market analysis, and growth strategies.

  
  

• Financial Projections: Provide realistic financial forecasts to demonstrate repayment ability.

  
  

• Documentation: Gather all necessary documents, like tax returns, legal registrations, and permits.

  
  

Request a free consultation with one of our leasing experts here.