Diversifying Lending

Your business is successful. It’s bringing in clients, retaining them and business is running smoothly. That means business could be growing or expanding, so is your company ready to grow? Sure, you can hire more team members or expand your offerings, but from a fundamental business standpoint, how can your business grow its tangible, physical tools and space to make that happen?

At some point, you’ll need loans. Financing equipment will need to happen, but your prior borrowing habits and history will be reviewed in great detail. Depending on what it looks like, it could hold back your business from getting the financing it needs, regardless of the status of business.

KLC Financial’s Chief Credit Officer Shannon Smith said that diversifying your business’s borrowing habits is key to assuring a good credit standing when it comes to future lending agreements.

“It’s good to spread the relationship with lending out,” Smith said. “It’s good for them to diversify their lending and and have multiple sources of capital beyond just one.”

Working with your bank and adding a financing organization like KLC Financial to complement your sources of capital to acquire equipment is overall a good tactic, like diversifying an investment portfolio or your customer base.