Before you seek financial assistance, you should thoroughly assess your current financial situation. Ask yourself the following questions to determine your business' financing needs:
Do you need more capital or can you manage the existing cash flow?
If you are having trouble paying your obligations on time, you may need an infusion of working capital.
What is the nature of your need?
Do you need money to start or expand your business or as a cushion against risk?
How urgent is your need?
Whenever possible, it's better to anticipate your needs rather than looking for money under pressure. It is harder to gain approval for a loan when your company is already in trouble, so plan ahead and secure financing well in advance of a crisis.
How great are your risks?
All businesses carry risk, and the degree of risk will affect both the cost of your loan and available financing alternatives.
In what state of development is your business?
Needs are generally more critical during transitional stages - start-up and expansion being two of the most urgent and costly.