One of the most frequent questions I receive is: "How do I know if my business is actually ready to apply for a loan or line of credit?"

And it's a reasonable question—because applying too soon (or too late) makes the process more difficult than it needs to be.

While every company will be different, these are some signs that maybe you are ready to proceed now.

1. You've Got a Clear Purpose for the Funds

Whether it's purchasing equipment, ironing out cyclic cash flow, bringing in new employees, or expanding to a second location—you need a good reason for borrowing. Lenders are fond of details, and you should be too. Having a precise idea of why you are borrowing the money makes it simpler to select the appropriate form of financing as well as resist temptations once the money is in the bank.

2. Your Financials Are in Order

Before you apply, check your books over. Are your tax returns current? Do you have recent profit and loss statements? Can you show consistent income or some rationale for variations?

The lender will require a clear financial picture—and the cleaner the books, the better your chances of being approved.

3. Your Credit Is in Good Shape (or Improving)

Even if your business earns income, a bad personal or business credit score could be standing in your way. Conversely, don't lose it if you are not blessed with a flawless credit. You will still qualify for certain types of loans, as long as you are making an effort to increase your score and manage debt wisely.

4. You're Planning Ahead—Not Scrambling

One of the best times to go looking for financing is before you flat-out need it. It gives you time to shop around, establish your credit history, and position your business for the best terms. Delaying until you find yourself in a tight spot can shrink your choices.

If you're checking most, if not all, of these boxes—you're likely in pretty good shape to start looking into your options.

And if you are not clear on where you are, no problem with that either. I am always happy to review your finances with you and work through the next best step.