Business loans are a great source for much-needed cash flow.
Part of running a successful business is managing cash flow properly. There are a number of reasons why businesses may want to take on additional funding in the form of a business loan. While there are other options, a business loan may be your best bet if you need money for your business, for these reasons:
1. Using a loan to start a new business
Starting a business can be exciting; however, if you’re not keen on risking your hard earned cash or investments to fund your dream, it may be ideal for you to take out a loan. You don’t have to worry about answering to investors, or dealing with upsetting a loved one to borrow money or put all your faith in a half-baked GoFundMe campaign. Get the cash you need within hours, and make low monthly payments as you get your business going.
2. Hiring new employees
Need to hire new employees? Get some cash to cover their training and pay. If you need to make a key hire and would like to make sure that payroll is covered for the next few months, a business loan ensures that you have cash on hand when the perfect person becomes available to join your business.
3. Funding the production of adding a new product or service
Looking to produce a new product, mass produce a prototype, or fund licensing for a new service? A business loan offers the flexibility to finance this temporary cash shortfall so that you can fulfill your orders and grow your business.
4. Need cash to fund off-season or slow sales periods
If you just need some cash to cover expenses during the times of the year when your business isn’t booming, a business loan may be the way to go as you wait for cash flow to rebound during the off-season.
5. Funding to move to a new office or open a new location
Moving your office, opening a new location, or even doing upgrades to your current space can be extremely costly. With that being said, a business loan will allow you to hang on to your cash, and move to the space that you deserve without having to compromise on your vision. Flexibility with repayment will enable you to keep your cash so that you can expand your business in other ways as you settle into your new space, without having to worry about a balloon cash payment up front for your new digs. As we said before… affordable monthly payments may be a better option for your current needs in this situation.
6. Need to purchase, replace, or repair equipment? A loan may be what you need.
Equipment can make or break your business. Your business may not be able to wait until you can save up enough money to fix it. Or in some cases, your business may rely on equipment that is fully functional in order for you to receive cash. In that case, a business loan that can be funded the same day can keep your business rolling without missing a beat.
7. Get the word out there by taking a loan to fund your marketing and advertising efforts.
Need a few more clients or pump up the volume on your customer flow? Is your brand outdated and in need of a facelift in order to remain competitive? A business loan may be great to fund the rollout of your marketing efforts. Because the payment terms are more flexible, your campaign will pay for itself over time, versus you having to stress about making an immediate ROI on your efforts.
8. Purchase another business with a business loan.
Business purchases can happen in a number of ways. If the prospective business requires all cash up front, that may put you in a bit of a pickle. While you may be able to negotiate terms with the seller, you may want to see if you qualify for a loan to cover the cost of the business just in case. Or, if you are able to negotiate a better deal because you have cash, a loan may be able to give you the flexibility that you need as you take on this new venture.
As you can see, a business loan can be used to fund a number of needs for businesses of all shapes and sizes. Hang on to your cash and speak to a professional today to get the funding that you need to pay for the things that you need to take your business to the next level. With flexible repayment terms and no prepayment penalties, a business loan may be an option that you should consider the next time that you need to dip into your cash reserves for your business.
At LoanMe, we’re able to help business get the funding that they need, as we have a number of loan options. Contact us today to get pre-qualified without affecting your personal credit.