Written by: Guest | Best Company Editorial Team
Last Updated: April 1st, 2020
Guest Post by Matt Shealy
As a business owner, you know your company can have ups and downs as consumers spend freely or hold onto their money tightly. Consumers can be fickle — spending thousands of dollars one week and becoming a scrooge for the next few months.
During one of the downtimes, and before the shopper’s confidence builds, you may find your company needs a business loan. Here are seven times it may be smart to take a business loan for the benefit of your company.
At a certain point in your company’s growth, you may find the opportunity to market to potential clients or customers of an unknown consumer base. When that happens, you will need money for promoting your products or services, researching potential focus groups, developing programs for distribution, and finally selling the item.
Don’t stop there! Marketing is also used for advertising to current customers about new products and offering promotions to increase sales. Investing in tools like Marketo can make a huge impact in how you engage current customer for cross-sell opportunities and retention. So, when you need money for marketing, go big!
After the first several years of building your business from nothing, many successful business leaders find a stagnant air about their company. That is when they decide they need to expand ideas, advertising, customer bases, and inventory in order to increase the company’s profits.
Growing your company can come with many risks and even more rewards. When you want to advance your company, talk to Quick Loans Direct about loan opportunities.
Having inventory is essential to any thriving business, and it is important to keep up with consumer’s demands by actively replenishing and updating your inventory with more items. If you don’t have the capital to spend on inventory, you can find your business in the midst of a conundrum. Don’t invest in inventory haphazardly. Tools like StitchLabs helps eCommerce businesses project inventory needs based on channel demand.
Without inventory you can’t make money, but without money you can’t purchase inventory. That is when a business loan can boost your ability to purchase the necessary inventory to keep your customers happy.
If you need more equipment, specialty machines, or new vehicles, financing the purchases often occurs without a second thought. This can include expanding your IT department or in-house accounting once your company has grown large enough to warrant the expansion.
If you are a delivery service, having vehicles may also be required as your company gets more orders. Business loans can help with all of it.
As your company grows, you may need to find a new business location or remodel and update your current building. It could also be that most of your work is done in an offsite location inside the warehouse that needs to double the available space for inventory.
To keep business booming, you need to keep inventory moving in and going out, and that can mean moving the whole business to a new location or finding another warehouse. Whatever you choose to do, a business loan can help ease the financial burden on your business.
One of the biggest reasons used by most companies when they apply for loans is that they need to hire qualified employees as their business activities expand. With hiring employees can come extra expenses such as purchasing furniture, acquiring extra workspace, recruitment costs, and additional expenses for office essentials.
Also, you may find you need to hire talent to take on special tasks around the office such as a bookkeeper, customer service specialist, or a marketing genius. Taking a business loan can help you find the money to invest in that talent for the benefit of your company.
Once or twice in a lifetime, a business opportunity may appear that is almost too good to be true. It may be the buying a partner out, combining another business into your own, or buying a failing business’s inventory. No matter what the investment is, it will take working capital to make it happen. If you truly believe the opportunity outweighs any costs it may incur, why not take out a loan and make your dreams come true?
No matter why you are thinking about taking out a business loan, you must ask yourself if the action will improve the company’s bottom line. If the answer is positive, the loan can be a smart business decision. Succeeding is what your business is all about.
Matt Shealy is the President of ChamberofCommerce.com. Shealy specializes in helping small businesses grow their business on the web while facilitating the connectivity between local businesses and more than 7,000 Chambers of Commerce worldwide.