How to Know If Your Business Could Use a Commercial Loan

Many small business owners use their own savings when they’re just getting going, or take out personal loans to obtain adequate funding to get their show on the road. While this can work out for some people, others can’t afford to take a hit on their credit like that or would prefer not to. This is where a commercial loan comes in handy, where the loan is taken out under the business and not under an individual.

Time to Establish Business Credit

One reason it’s important to take a loan out or sign up for a credit card or line of credit using your business’s name is that you want this business itself to build a credit history. If you’ve been using your own personal sources, you as an individual may benefit but the business won’t. To start out, it’s a good idea to apply for some sort of credit when you don’t absolutely need it. Use a little here and there to show that your company can responsibly handle this amount of credit.

Your Company is Set-Up as a Corporation

While an LLC is often the best structure for a small business, remember this can be treated as an individual or as a corporation when tax time comes around. Corporations have a few special rules that may be advantageous for certain circumstances. For example, when you take out debts under a corp., you as an individual are not liable if things go awry. Plus, using other people’s money (ie. the bank’s, private lenders’, or investors’), is considered a better strategy than using your own (leverage is a powerful thing!).

Cash Flow Could Use a Boost

Cash flow is often a problem for small and large businesses alike, especially when it comes to accepting larger-than-usual orders, with the need for extra inventory, employees, or newer/more efficient equipment.

How to Get Started With a Commercial Loan

While bank loans often seem like the easiest route, it’s pretty difficult to be approved, especially without a credit history. Even if a loan is approved, it can take weeks or even months to actually get funded, when usually it’d be much more convenient to get funded now! This is where private loan providers can come to the rescue, able to approve and fund your loan needs in a matter of days.


If you could use a jump start on financing a small business, WCM is a business loan provider offering fast, small-business loans, ranging in size from a few thousand dollars to over one million. Contact us today to learn more, or fill out our simple application to find out if you can be approved.

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