Unfortunately, the idea of getting a small business loan has developed a bit of a negative stigma over time. People hear the word “loan,” and immediately think they’re going to be clawing their way out of a predatory lending situation, but that’s not the case most of the time. Small business loans can be incredible tools for business owners to use when they need a bit more cash on hand.
With a lender like United Business Funding, you’re sure to get fit for the best loan for your needs, with a flexible and fair repayment schedule. Below are the top 7 reasons businesses might decide to take out a loan.
1. Increasing Cash Flow
The need for cash can pop up for many reasons. Perhaps there is economic turmoil happening that’s outside your control, but you need more cash to get through it and come out on the other side unscathed. It could be that you’re looking to make a large sale and you need cash to finance that bulk order. Needing extra cash in the bank isn’t a bad thing as a business owner; nearly every entrepreneur out there knows how business can ebb and flow with time, sometimes requiring an injection of funds. UBF is here to help.
2. Strategic Business Investments
Perhaps you’re ready to buy new equipment for manufacturing your product, purchase new trucks to transport your product to distribution centers, or even grow your business through a couple specific initiatives. Strategic change usually requires an investment to help equip your business and your people with the tools needed to be successful.
3. Hiring New Team Members
If you’re restructuring your team or looking to add more team members to support your business, that requires significantly more cash on a monthly basis than you were dealing with before. Sometimes, it takes a few months to see the financial gains from expanding your team, so you might need cash flow to get you through the first few months with new employees. A business financing package from UBF can help take you there.
4. Advertising Initiatives
A big sales push with an advertising campaign is done because they are shown to be effective and have a return on investment, but you may need an infusion of cash to kick off the campaign. Advertising is a major cost for businesses, but it’s not something you should neglect. Obtaining a business loan for your business advertising budget can be an effective way to grow your business!
If your business has grown over time, expansion is inevitable. Expansion can look like moving into a new office, needing new office equipment for bigger teams, working to increase your supply of raw materials to create more products, and more. Expansion is a mark of business success, not business failure, so don’t be afraid to take out a business loan to help expand your business!
6. Debt Restructuring
Perhaps you have a number of small loans that you’re paying back and it’s getting difficult to keep track of it all. Or, maybe you’re paying back loans with sky-high interest rates and it makes more sense to take out a large loan to pay off all the small debts you’re chasing, so you can then just work with one lender to pay back the money at a fair interest rate. United Business also has a debt consolidation program for business owners looking to consolidate date, lower their interest rate and make smaller payments per month.
7. Office Renovation Financing Package
Office renovations can be purely cosmetic, but they can also be required if there was a water leak that damaged your meeting room or a break-in that endangered sensitive information. If you need a security system, to build out new offices, or simply a fresh coat of paint and some aesthetic work, a business loan could be the right move for your business.
Remember: Business Loans are Tools
Taking out a business financing package should never have any shame behind it. There are many reasons organizations can use extra cash, and most of them are great for continued business growth! If you’re on the fence about taking out a business loan or business financing package, contact United Business Funding today to discuss your options.