Preparing to Borrow Money? Here's what you need to know before you do: • Borrowing money can help finance your business, allowing you to prepare for emergencies and growth. • The best time to get a loan is when you don't desperately need it. It's important to plan ahead and think about financing your business today. • A detailed, realistic two-year business plan is the most important tool to help you decide how much to borrow and what type of financing to seek. Most people understand the basics of consumer debt: if you're racking up more expenses on your credit card than you can pay off, you're in big trouble. But, for some reason, when it comes to small business debt, the picture isn't as clear. Not all businesses are at a point where borrowing money is the best solution for them. So, what types of businesses should consider taking out a loan? How much debt can you take on? Considering all the options available, what type of loan is best for your business and how can you ensure this loan helps you grow rather than weigh you down? To help you answer these questions (and more), we spoke to some of the best in the business, including Drew Tonsmeire, regional director of the Small Business Development Center; Mitchell Weiss, lending expert and author of “Business Happens”; and Gregory Liegey, volunteer with the SCORE association and vice president of Metrobank. Is your business ready to borrow? Before you decide that taking a step is the right route, consider other options. Being a responsible borrower means looking for every possible way to avoid taking out a loan. . A simple option to ensure your business runs smoothly is to work with your suppliers. For example, if you own a bakery that caters to middle of paper... you want to finance it for less than a year. "Given these deadlines, you can split your loan into several loans so that you can get different terms for each expense, says Tonsmeire: "Perhaps you are considering leasing equipment or finding a lender who can finance your equipment purchases, and use another source for inventory and accounts receivable." Finally, to truly be a responsible borrower, Weiss recommends reviewing the default provisions of the contract: "What's going on. if you don't make a payment? What kind of healing period do you have to right a wrong? People are so eager to receive money that they often don't look at this section of the contract as well. the importance of comparing prices from many different companies to find the best one As with anything, shopping around could help you save a lot..