There are a number of reasons that businesses of all sizes encounter the need for an infusion of capital.  In some cases, businesses will encounter a short-term and surprise problem with cash flow, but the need to pay costs never goes away regardless of that situation.  Payroll need to be met, equipment lease payments need to be made and other costs simply have to be handled within a certain timeframe, regardless of how much cash is available at the time.

On the other side of the coin, many businesses encounter the opportunity to grow and expand, but in order to do so they’ll need to invest in more equipment, more talent and perhaps more space.  All of these things cost money, and everyone understands that there is no time for plodding and pondering in the business world – you jump ahead or you fall behind.  You need capital to get these things done so you can continue on your path upward.

So what do you do?  You look into financing, that’s what.  Financing for businesses can arrive in many forms, so you need to make sure that you’re making the best choice possible for your specific situation.  In many of those situations, a business loan is going to make the most sense, particularly if you’re going to be making investments in your infrastructure that are going to in themselves generate revenue going forward.

In order to help you move closer to making the correct choice, we’re going to provide some questions you may want to ask yourself as you think about funding for small businesses.