Whether you’ve just started considering a business loan, or already have your loan in the bank, you’ll be giving some thought to how you’re going to use the money. If you’ve already gone through the process of applying for a business loan and getting accepted, you probably have a strong idea about how to spend your loan.
You may have several different uses for your business loan cash, or you may have a single focused plan for the money. Either way is fine, providing you get the most out of the funding, grow as a result of borrowing and make headway in solving any ongoing problems your business has.
Whatever stage you’re at, here’s some inspiration from the experts here at mycashline on how to get the very most from your small business loan.
Use your business loan to regulate your cashflow
From Rebecca Soto - Group Accountant
Cashflow is a major headache for a great number of smaller businesses. There are so many reasons why cashflow can become an issue, such as:
A business loan can help you to fill the gaps in your cashflow, particularly if you are confident that your revenues and profits will pick up once you have the opportunity to regulate your cashflow. Cashflow problems are enough to threaten the future of some smaller businesses, if they are unable to pay suppliers, staff members or their landlords, for example.
Cashflow problems can arise even for businesses that are performing well and are profitable. In this scenario, seeking business finance is often a no-brainer.
From Dovi David, CEO
If you’re struggling in a highly competitive marketplace, or if you just have a fantastic new business idea, a business loan can help you to become more agile.
In business, agility is everything. If you can make changes in response to consumer demand and market conditions, then you are much more likely to survive and thrive over the long term - no matter what challenges you come across on the way.
Being agile means that your business will evolve along with market conditions. Here are some of the ways you can use a business loan to become more agile.
Put your expansion plans into action
From Augustine Gyapong, Head of Credit, Risk and Operations
So, you’ve got big plans for how to grow your business? A business loan can help you to reach new heights. Here are some of the ways you can use a business loan to fund growth:
Taking on staff
Expanding into larger premises
Invest in new tech and automate processes
Undertake customer research
To start growing your business, you need to have a sensible, actionable and measurable strategy in place. These are all the factors that we assess when considering an application for one of our business loans. We love nothing more than seeing our customers’ plans come to life with the help of our financing.
Improve your marketing
From Rachel Morgan, Chief Marketing Officer
Investing in marketing can be the single thing that takes your business to the next level. If you get it right, you’ll see a return on your investment quickly, but putting together an effective marketing strategy is vital before you spend a penny.
Here are some of the ways a business loan can help you improve the impact of your marketing:
Hire an agency to help with digital marketing
Take on professional copywriters to improve your website and blog
Invest in PR to help amplify your brand
Hire the right marketing expertise for your business
Invest in an effective PPC campaign to boost your search engine ranking
Enter industry awards
Direct time and effort into creating an email marketing campaign
Invest in people
From David Smith, our partnership manager
Employing the right people can be the difference between a business that’s ticking along and a business that’s truly growing.
A good leader will know that delegating is incredibly important to business growth. Making sure you have the right people for the job and empowering them to own their specific tasks will not only free up your time but will allow you to focus on the bigger picture.
Here are some of the ways our business loans can help you hire brilliant staff:
Advertise jobs on premium sites and publications
Offer competitive salaries
Improve cashflow to ensure your staff are paid on time
Hire specialist contractors and freelancers
Hire seasonal staff during busier periods
Taking out a business loan is a major financial commitment, therefore, it is vital to consider exactly how you're going to use the money before you apply.
Although we trust business owners, part of our process is to ask where and why the money is needed. Our underwriting team is open-minded and we are always keen to hear your plans for your finance. We love going on this journey with our customers and are glad to be helping so many entrepreneurs discover their full potential.