Before you decide to borrow it is always important to consider the impact it may have on your business. Make sure you ask yourself why you are borrowing in the first place and whether a loan is the best step forward. If you are borrowing because you are cashflow poor, could you tighten up on your expenses? change your invoicing terms? and/or introduce a new product/service to boost your profits?
In the ideal situation you will be taking a loan because there is opportunity to increase your revenue and the loan will help your business grow and get to where you want it to be.
We know this is not always the case however and sometimes businesses need funding to get through to the next round of payments, repay a large debt or even just to survive. If this is the situation your business is in you need to ask yourself why your business is in the current situation and what could be done differently to make sure it does not happen again. Sometimes things are totally out of your control but they still happened and possibly could have been avoided if your business was operating better and had enough earnings to keep running without financial assistance.
Once you have taken a good look at your business, speak with your accountant and/or financial advisor and they can help make a decision on whether a business loan is the right move for your business. Make a plan moving forward and set goals to work to that will increase your business performance and your profits.