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How Much Money Am I Looking For?

While you may assume the best amount to ask for is “the most money I can get”, this isn’t necessarily a great strategy for a business. This answer tells a potential lender that you haven’t really thought through your loan purpose. Your loan purpose should drive the answer to this question.

Those taking out the loan need to understand the costs associated with borrowing additional money that they may not necessarily need for the actual request on hand. It is important for business clients to ask themselves, “What is my true return on investment going to be should I decide to take out a loan?”

  • Is it going to increase the production capacity leading to additional sales and additional income for the business?
  • Are the additional funds worth paying interest on if I don’t really need them right now?
  • Will I be able to borrow money down the road if I already have too much equity tied up with an existing loan?

There are costs associated with borrowing that should be thoughtfully considered every time you seek borrowed funds. In other words, borrow what is required to fulfill your business need, but no more. For questions about ways to expand and determining if a business loan is the right option for you, consult with a commercial lender who understands the different options available.

While we trust you’ll find value in this content, it’s important to view it as a starting point. For personalized guidance tailored to your unique circumstances, we strongly advise consulting with a qualified professional who holds the necessary licenses. This article, along with any associated resources, should not be interpreted as legal or financial advice. While efforts were made to ensure accuracy at the time of preparation, we cannot guarantee its current relevance.

Citizens National Bank does not warrant or represent the accuracy, applicability, completeness, or suitability of the information provided. Citizens National Bank explicitly disclaim any responsibility for the use or misuse of these materials. By accessing this site, you agree to absolve Citizens National Bank from any associated liabilities. Exercise caution and seek professional advice before making any financial or legal decisions based on the information provided here.

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Chad King

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