You may require loan to feed your routine expenses such as salaries, utility bills, raw material and supplies. Paucity of funds should not stop the operational activities. So, funding these activities would enable you to maintain the regularity of your business operations. 

If you deal in a product/service with high demand, regular supply becomes the critical factor. Increase in production capacity by adding more machines and equipment’s may call for additional capital. 

When you are worried about repayment of numerous small loans, it is better option to go for a big loan and settle up small debtors. This will give you mental peace. Converting many small debtors into a single one could save you from dealing with many parties.

Managing cash flow is always a challenge for small businesses. Thus, if the smaller businesses are unable to meet the liquidity requirements for a working capital, such as overhead salary, rent, inventory management and utility bills, loans may be the solution.

A sick business unit can demand for the money for its turn around. Of course, arranging money for revival is a tough task. But, if supported by a sound revival strategy and a practical plan, the borrowing request can be considered by the lender. 

Expanding business required capital. Debt financing could be an excellent idea to fund the assets required for new operations because the cost of debt is lower than the cost of equity.