Some entrepreneurs and business owners avoid business loans, believing them to be used only as a last resort to solve cash flow problems or to keep operations running smoothly.
However, even profitable businesses need a short-term cash injection from time to time. In other words, business loans are not simply for those who are in dire financial straits.
In fact, there are many good reasons to seek out a small business loan. Taking out a loan can actually be a sign of a business on the rise, help improve a company’s prospects, and pave the way for future prosperity.
Rather than seeing Canadian small business loans as something that will force you to work harder to get out of a tough situation, consider it instead as a new source of capital, one that could help your business become more efficient, save you money, and generate higher revenues.
1- Invest in Equipment
The equipment needed to stay current and efficient in business can be costly. That said, equipment costs can sometimes be better-managed once you’ve secured a business loan.
Equipment-related business loans are one of the best ways to help improve your business because they can contribute to increased business volume and profit margins. At the same time, high-quality equipment can also help reduce maintenance and upkeep costs, which will also help contribute to a healthier bottom line.
For example, a courier company with an aging fleet of vehicles could opt to invest in newer, more efficient models. Although this presents a major cost up front, the reduced costs and increased efficiency could allow this type of investment to more than pay for itself by improving the company’s profitability.
Not only that, but the business may draw in new customers that are interested in a company that priorities green technology.
2- Increase Your Marketing Efforts
Every business is different, but they all need to attract new customers and keep their existing customers happy. Using your business loan to bolster your marketing efforts could help you hit both of these birds with one stone.
Finding the right marketing agency to lead advertising and promotional endeavours could set your business on the path to sustained growth. By using your loan to contract out these challenging tasks, you can focus on your core business.
Alternatively, there could be marketing software that would be a perfect fit for your company, so adding them to your arsenal might be the best use of your business loan.
3- Improve your Web Presence
Every company needs to maintain a strong online presence if they hope to stay relevant. Standing out from your competition is important, but you only want your company to stand out from the rest for the right reasons.
If your website looks dated or lacks functionality, then you are missing out on customer conversions and might even be putting your brand at risk.Consumers should always be able to scroll through their options with ease online, and having a cutting-edge website is important.
Designing, building and maintaining a website is highly technical work that is often best left to specialists. A business loan can provide the capital to take care of these costs and put your business on a solid foundation.
4- Focus on your Staff
For many companies, especially small businesses, the difference between success and failure comes down to staff performance. But getting the most out of your employees is no small task. Significant time and effort might be needed to get your staff up to par with industry-leading practices.
Identifying the best training, coaching and team-building strategies is the domain of human resource specialists, and their services might come with a hefty price tag.
Using a business loan to help bring you staff up to speed with industry leaders could be the key to finding security and stability for your workers while paying dividends for years to come.
5- Renovate or Relocate
Many business owners quickly discover that their operations outgrow their start-up locations before long. Relocation or expansion can be the key to long-term survival for many small businesses.
But the costs associated with renovating an existing location – or moving to a new one – can be daunting, which is why many businesses wait too long before trying to relocate or expand.
Using your business loan to secure a new location or to make improvements to your current location could not only help your business survive, but also thrive.
Need a Loan?
For business owners of any size, it’s important to learn as much as possible about the business loan options that exist for your company. You might be surprised at how much capital you can secure and how flexible the repayment terms can be!
Thanks to CreditArch’s wide network of lending partners, securing a huge inflow of capital might be only a few clicks away. Whether it is for a business loan or even a home equity loan, simply filling out the form can get you connected to the perfect lender in minutes, and have the cash in your account in just a couple of days!