Is a business loan right for me?
Most entrepreneurs who start their own businesses will need financing from outside sources from time to time. You need cash for essentials like inventory, payroll, equipment and marketing. Rather than dipping into your profits, a business loan can cover your costs while keeping your cash flow intact.
Start with these to get your funding back on track Loan amounts can run from $100 to $100,000 with these lenders depending on your business and your need.
Before signing on the dotted line, it’s important to have a detailed business plan to ensure your extra working capital will drive revenue that ultimately helps you pay the money back. Create a plan of action for how to use your line of credit and how you will repay it.
How can I use a business loan?
To successfully scale revenue, you can use your business loan to:
- Hire much-needed help. Bring on valuable employees that will allow you to take on additional work and focus on growth.
- Invest in quality equipment. Access to working capital can help you afford quality equipment, whether you’re leasing or buying.
- Market your business effectively. Drive new customers and brand awareness through tools such as Google AdWords, Facebook ads, Twitter advertising and email marketing.
- Expand your space. If you’re a brick-and-mortar business, your office or storefront is often the first representation of your brand. Make sure it’s a good one.
- Take a risk. Often the biggest risks can reap the biggest rewards. Without a business loan, you may not have enough extra capital to take risks that can pay off in the long run.