I need cash – should I borrow from my 401K or my home’s equity?

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If you are looking for cash to invest in real estate, pay down high-interest loans, complete a home improvement project, or pay off an emergency medical bill, you might be wondering which the better option is: borrowing from your 401k or your home equity via a loan or line of credit. The answer depends on how you plan to use the money, how much money you need, and how long it will take you to pay it back? Continue reading “I need cash – should I borrow from my 401K or my home’s equity?”

When your business needs capital

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It’s kind of like a secret club.  Whether you are plotting your start up while working a full-time job, are currently a solo entrepreneur, or if you’ve owned a business for 50 years – there are commonalities.  You are a master decision maker and visionary, work a lot of hours and the oddest things will keep you up at night. Continue reading “When your business needs capital”

Is it time to grow your small business?

Sales are great. Customers keep coming back. Your cash flow is positive.

Congratulations! It sounds like your small business has successfully capitalized on a great idea. It might be time to expand.

At Litchfield Bancorp we know that small businesses are the workhorses that drive the U.S. economy.  We love seeing them grow and prosper. 

Continue reading “Is it time to grow your small business?”

Should I use a line of credit for business working capital?

Getting caught in a cash flow crunch is an all-too-common headache for even the most successful small business owners. It’s the reason why 29% of startups fail, the second most common cause behind “no market for the product,” according to research by CB Insights. Even profitable small businesses that don’t have a substantial cash cushion can meet this unfortunate fate.

There are multiple options for averting a cash crisis, but all are definitely not equal. For example, it’s tempting for owners to whip out a business credit card (or even a personal card) for a cash advance or to cover an unexpected expense. Viewed as a very short-term boost, the quick credit card solution comes with earnest plans to pay it off just as quick, in a month or two, max.

Continue reading “Should I use a line of credit for business working capital?”