How to take your business to the next level with a business loan
Want to take your business to the next level?
Whether you’re looking to increase the amount of stock you keep on-hand or hire and train new staff, a business loan can allow you to invest in your business to take it up a notch.
If you’re ready to compare business loans, our free service lets you compare loans from over 70 lenders—both big and small. You can get approval in as little as 24 hours, apply for any amount between 5K and 20M, and receive funds straight into your account once approved.
The extensive range of business loan options can help you turn your business dreams into reality.
Taking on debt is not a decision to be made lightly; do your research to ensure it’s the right decision for you and your business. If the circumstances are right, a small business loan can take your business from strength to strength.
Here are nine reasons why you might take out a business loan to support the growth of your business.
To hire, train and retain great staff
The long term success of a business can often be put down to the skills, knowledge and commitment of a great team.
Whether it’s front of house staff, a dedicated cleaner or an accountant you need, having access to extra capital could help you find, and develop, people that you can depend on.
Also, allowing new hires to take on the day-to-day activities of the business can free you up to concentrate on the strategic side of things.
If you don’t have the right expertise or experience at your business, you may need to bring in others at board-level to take the company to new heights. Gaining access to a range of people and their knowledge can be one of the best investments you can make.
To purchase extra stock or offer extra services
Many small businesses need additional stock to carry them over busy periods as they don’t want to risk running out of in-demand products. Buying products in bulk could also net you some valuable discounts, especially if you find a closing sale or special offer that you can’t refuse.
But acquiring the capital to make these extra purchases can be difficult, especially if the stock is needed just before a busy time. As long as you’re positive you can move the stock; this is where a business loan could come in handy to help increase profit margins in the future.
Great inventory management is crucial for this strategy to work as holding the extra stock can incur storage and transport fees, so work up a business plan to help with all the minor details.
Another significant way to build up your business is to expand your offerings. This could be your product range or the services that you provide.
To do this, think not only about extra offerings that are well suited to your business but also items that add value and improve customer satisfaction about the overall experience. For example, a carpet store offering a measuring and fitting service, and also carrying sets of blinds and curtains so the customer can outfit a room in one store.
To run new marketing campaigns
Good marketing is key to achieving business growth, and there are a few ways to go about it. Many small business owners understand that online marketing can add a new dynamic to promoting goods and services.
Digital marketing like using SEO techniques can help you find the best way to promote your business online. Content marketing, like having a regularly updated blog containing helpful hints or advice can reach a broader target audience and make them aware of your business.
Testing, changing and mixing marketing campaigns can be a valuable way to see what works best and when.
It’s also smart to start to think about new ways you can sell your products or services to more customers. A brick and mortar store could start selling products online, or an independent cafe could partner with local offices to provide lunch deliveries.
To invest in equipment for higher efficiency
There may come a point when it’s essential to upgrade your in-house equipment to stay competitive. Keeping on top of ever-evolving technology advances can help to future proof your business.
While technology can be expensive, investing might save on long-term costs. Better technology can streamline processes and key operations, meaning staff can be more productive with their time. New equipment can cut labour costs and help increase your business’s profit margin.
There are several options when it comes to financing new equipment. Tailored equipment loans can be matched to the expected lifetime of the new equipment, and taking out a loan where the equipment acts as security can generate lower interest rates and more favourable terms.
Be sure to run a cost analysis to make sure the equipment is essential for the business and that you can realistically meet the monthly repayments.
Please read our article for more information about equipment financing.
To renovate an existing premises
An excellent first impression is crucial in gaining new customers, you could be the best in town but having a run down, poorly outfitted shop or showroom with a tatty sign could deter customers from walking in the door.
Using a business loan to fund renovations can be a great way to attract new customers which are vital to increasing revenue.
A comfortable, pleasant atmosphere is especially important for businesses in the hospitality, retail and tourism sectors.
To move or expand your premises
The right location could make or break a business that depends on foot traffic, and if your established business is thriving, a business loan could take it to the next step with a bigger space, or second location.
A growing customer base needs sufficient premises and a location easily accessible by public transport or close to parking spaces. Having the funds to acquire new premises or expand an existing one can help you to meet your future vision and key goals for the business.
For example, if you plan on expanding your product range, you might find you need more space for extra staff, stock or any necessary machinery. If you want to increase your customer base, a location with better transport links or higher foot traffic may be the right move.
Ensure you take into consideration how a new lease or mortgage will impact your bottom line. A solid business plan can show future profit predictions and how these will be affected by more substantial repayments.
To pursue that once in a lifetime opportunity
If the chance comes along to acquire a competing business or secure a significant new customer, a business loan can give you access to the funds you need to achieve this.
As long as the expected returns outweigh the cost of the finance, this could be a lucrative move. Prepare realistic cost analysis and revenue forecasts which include the cost of borrowing to help you make an informed decision.
To commit to continuous learning
There is always more to learn about business, your customer base, your products, and how to optimise them all. There are several ways to advance your knowledge, from online training, self-paced programs, collaborations or mentoring, and even reading can all help your business thrive.
Keeping on top of new advancements in your field also gives you the best chance at success when implementing changes to achieve greater success.
Attending conferences and networking events that are key to your industry and development plans can pave the way to success for you and your employees.
To build your credit history
Taking out a business loan can be used as a strategic move to open doors for future investments. It can be hard for smaller businesses to qualify for more substantial loans. Borrowing a smaller amount and being consistent with repayments can help to build up your credit history, and start a relationship with a bank or lender which could be useful in the future.
There is the cost of interest and fees with this strategy, but if it is right for your business, it could allow for a larger loan in the future.
Biz Loan Comparison can help you secure the right loan by taking your unique business needs into account and allowing you to compare loans from some of the best lenders currently on the market.
Seeing industry-leading loans side by side in our easy-to-use comparison tool helps you choose the best one for you: the loan that fits right into your business vision.
A small business loan is no simple affair. It’s a big commitment and a big priority for success-driven businesses. It’s also something that can affect your personal finances, so we want to make sure the option you choose is comfortable for you.
Still have questions? Let’s talk
Confused? Not sure if this applies to your situation? Phone us on 1300 190 429 for some free, no obligation advice.
Or want to compare business loans now?
You may also like...
What you need to know about small business loans
Finding the right loan to finance a new business idea or to grow an existing business can be […]
Small business loans for start-ups and small businesses
You’ve hit the jackpot. Your new product is going to be the next big thing—people need it and […]
7 Steps to take before applying for that small business loan
Whether you’re just getting your new business idea up and running, or ready to take an established business […]
Everything you need to know about debtor financing
If you’re a small business owner, you’ve probably experienced the juggling act between paying suppliers and receiving paid […]