See How Much You Qualify For
This blog was last updated on June 24, 2021.
If you’re an established business and are focused on growth, you may be searching for a business loan to help you accomplish your goals. But before you apply for a loan, you’ll need to determine the best amount to ask for.
If you borrow too little, you may not accomplish your goals, and if you borrow too much it could be a financial burden.
So how do you establish the “correct” amount when seeking out loans for businesses?
Consider the Variables
The answer is simple and yet complicated. There is no right, “blanket” amount for a business loan that will work for every business owner. Meaning there’s no perfect equation that tells you how much to borrow; it’s all up to your unique business needs.
To determine the right amount, it’s helpful to consider a host of factors, including:
- Your business type
- Your business needs
- Your plans for the funding
- Your cash flow and expenses
- And more
If you have a dedicated finance department, then you likely have somebody standing by to assist you with these decisions. But chances are, as a small or medium-sized business, you are your own finance department.
So how do you make that kind of decision without years of experience crunching numbers and assessing risk?
You may be tempted to borrow a large amount of cash; overshooting your expansion budget (or whatever business project you’re looking to fund with a loan). That way, even if expenses end up being higher than projected, you still have enough cash to cover it.
But keep in mind that with a higher loan, the associated fees may be higher, too. If you borrow more than you can afford to repay, you may find yourself in an endless cycle of debt.
When you take out a loan responsibly, and for the right amount, a loan is an incredible business asset that offers you opportunity, growth, and success. It shouldn’t be a financial burden.
At the same time, if you’re too risk-averse, you may end up borrowing less money than you need. With this scenario, you could find yourself short on cash while upgrading equipment or planning a location move, and unable to carry out your plan as you intended. And, consequently, you could be left repaying a loan that didn’t benefit you to the fullest extent.
As you can see, neither borrowing high nor borrowing low is a safe strategy; you need to borrow the right amount for your needs, no more or less.
If There’s No “Right Amount,” Then How Do You Decide?
If you don’t know how much capital you need, then you may want to consider enlisting the help of finance professionals to determine a game plan.
And, what better finance professional than your very own lending partner? You likely already have a relationship with them (or intend to begin one), and they know the intimate details of loan finances.
The Only Lending Partner for Your Needs
Mulligan Funding helps small business owners access the right lending solution for them every day. Often business owners contact our team knowing that they need a loan, and what they want to accomplish with the funds, but not having a clear idea of how much loan capital they need to accomplish those goals.
Let Mulligan Funding Help You
We’re here to help strengthen and grow your business. Speak with one of our loan advisors and share the details of your business plan, whether you’re looking to revamp your cash flow situation or expand your business.
We’ll help you to figure out how much you need to accomplish your goal, and how much you can repay realistically without stressing your finances or stretching the limits of what your business model can accomplish.
Plus, we’ll never provide access to funding for more than what we believe that you need. We want to see you succeed with the help of business capital, not struggle with a debt burden.
A Long-Term Financial Partner
From the moment that you come to us for help accessing your first business loan, you become part of the Mulligan Funding family – a long-term partnership that you can rely on over and over again. You’ll receive a dedicated point of contact so every time you call, the same loan advisor who’s familiar with your business is there to help.
We aspire to build long-term relationships with each business owner we partner with. We gauge our success by your success.
We provide access to working capital for business owners seeking an alternative to the large, traditional bank loans that can be difficult to qualify for. Our working capital loan products boast flexibility so you can get started even without extensive qualifications and perfect credit.
More benefits include:
- A seamless application
- Approval in hours with funding as soon as the next business day*
- No collateral required
- Small, manageable daily payments
If you’re interested in discussing your financing options, call Mulligan Funding at 855-326-3564 today!
The information shared is intended to be used for informational purposes only and you should independently research and verify.
Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.