How businesses can use financing to stay ahead, without overextending
As a small business owner, if you’ve ever had to delay a project, turn down work, or hit pause on hiring—not because you lacked opportunity, but because cash flow wasn’t there—you’re not alone. It’s common amongst small business owners to ask: I know this opportunity would grow my business… but should I borrow to do it? Borrowing isn’t about chasing money. It’s about moving with intention and putting capital behind what already works in the business.
Borrow to Build, Not to Float
The most strategic use of financing is tied to momentum, not survival.
Small business owners commonly do not borrow to keep the lights on, they borrow to:
- Take on a high-margin project
- Expand crews for a busy season
- Lock in inventory or equipment pricing before costs rise
In other words, they are using capital to build capacity and fuel growth—not to fill a gap.
When there’s a clear return and a defined timeline, borrowing becomes less about risk and more about timing. And timing is everything especially in industries where seasons, cycles, and client demand shape the pace of their work.
Gear Up During Slow Season If a business owner is in an industry that is susceptible to a slow season, they already know: the work comes in waves.
But slow seasons don’t mean slow progress. They provide an opportunity to gear up.
Whether it’s restocking supplies, tuning up equipment, or onboarding new staff, using working capital during downtime lets business owners hit the ground running when demand comes back. Doing so means business owners are not necessarily reacting—they are simply setting the pace.
Focus on the Return On Investment
Before business owners borrow, it is important for them to ask the question:
“Will this bring in more than it costs?”
Say a project will generate $180,000 in revenue for the business, but $100,000 is needed to cover the costs of materials, labor and other resources to complete the project. Then say the cost to borrow the $100,000is $12,000. In this case, the business owner’s return on investment is $68,000, which is a no-brainer for the business.
But without having access to those funds, the business owner might miss out on the opportunity to complete the project entirely.
Short-Term Capital. Long-Term Impact
For most small business owners, long-term loans can feel like overkill.
What most businesses need is fast, focused financing solutions that match the company’s project cycle, not one that lingers on the books for years.
Short-term financing allows business owners to stay light, move quickly, and say yes when opportunity knocks.
It’s Not About the Debt, It’s About the Upside
- When used wisely, capital shouldn’t weigh a business down. It should lift it up and provide the ability to: Say yes to bigger jobs
- Bring on help when needed most
- Improve operations and deliver better, faster service
At the end of the day, every decision a business owner makes reflects their goals. The company’s working capital strategy should too. Consider reaching out to Penhurst Capital today. Penhurst specializes in helping small businesses find capital that aligns with their goals, allowing them to borrow with confidence. Because when opportunity arises, smart financing ensures they are ready.
