Preparing for Growth: When Is the Right Time to Borrow?
November 25, 2025
Every business owner wants to grow—but growth often requires resources. Whether you’re planning to expand your space, hire more staff, or invest in new technology, you might wonder: Is now the right time to take out a business loan? Here are some signs that borrowing could be the right move for your business.
You Have a Clear Growth Strategy
Before borrowing, define your goals. What will the funds accomplish? Will they help you increase revenue, improve efficiency, or reach new customers? A clear plan not only guides your decision but also shows lenders you’re prepared and serious about your business.
Your Cash Flow Is Strong
Loans come with monthly payments, so review your cash flow carefully. Can your business comfortably handle repayment without straining operations? If your income is steady and you have a cushion for unexpected expenses, you’re in a good position to borrow.
You’re Facing a Timely Opportunity
Sometimes, opportunities don’t wait—like securing a prime location or purchasing inventory at a discount. If you’ve prepared your financial documents and understand your borrowing options, you can act quickly when the right moment arrives.
Your Credit Is Healthy
Strong credit—both business and personal—can help you qualify for better rates and terms. If your credit needs improvement, take steps now: pay bills on time, reduce outstanding debt, and keep your accounts in good standing. A little preparation can save you money over the life of the loan.
The Loan Supports Long-Term Goals
Borrowing should strengthen your business for years to come, not just solve short-term challenges. If the loan will help you expand, increase profits, or improve efficiency, it’s likely a smart move.
Bottom Line
The right time to borrow is when you have a clear plan, strong cash flow, and a growth opportunity that aligns with your long-term goals. At Redwood Credit Union, we’re here to help you make that decision with confidence.
Ready to explore your options? Contact our Business Services team today and let’s prepare your business for what’s next.
PPP Forgiveness Application Deadline
Congress passed The Economic Aid Act which changed the deferment period from 6 months post covered period to 10 months post covered period. For example, if your covered period ended June 30, 2021, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2022, and you have until then to request forgiveness. Please use the following calculation to help you identify when your forgiveness will be due:
- PPP borrowers may select a covered period anywhere from 8 weeks to 24 weeks.
- RCU is automatically calculating your loan due date based on a 24-week covered period, if you intend on using a shorter covered period please inform us immediately as this will impact your due date.
- Your correct deadline will be reflected in your online banking account.
If all or part of your PPP loan is not forgiven, your first loan payment will be due the first of the following month after a decision is made by the SBA.
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