Why Should You Get a Small Business Loan?

You started your own small business a while ago. You made the right decision and quit your
full-time job. You work on what you’re passionate about, you’re your own boss, you make a
great product or provide a service that you’re proud of. But now your business seems
stagnant. Sounds familiar?

You know you could hire more people, buy raw materials and new equipment to boost your
sales, but you need funds to do it. Finances frustration is something many entrepreneurs
face. Fortunately, you are not alone: a small business loan could be the solution.

Depending on what type of business you own, having money to invest on it is essential
when you want to purchase inventory, launching a marketing campaign to reach more
customers, renew your equipment or hire more employees.

Some of the benefits that a business loan can bring to your business are:
● If you need equipment for your business but have limited funds, equipment
financing can be the perfect solution. You can buy or replace existing equipment as
your business grows.
● One of the most important aspects of every business is the inventory. Many business
owners take business loans to purchase inventory. This is one of the biggest benefits
of a business loan: it gives you the opportunity to purchase inventory in bulk and at a
discounted price.
● Superior talent is up to eight times more productive. Because of its high value and
scarcity—and the difficulty of replacing it— it can create huge opportunities for a
company. In other words, great employees are key to a great business. You should
invest in ways to assure you hire the best new employees, as well as ways to keep
your current employees happy and committed. Here are a few examples of how a
business loan can help you:
o You can hire a recruiting firm to select only the very best candidates
o You can raise the salaries for your existing employees
o You can invest in worker wellness
o You can invest in training your employees
● Marketing and advertising are key components to the growth of a small business.
You can have a great idea and you want to translate it into opening a business, but if
you don’t reach your target audience, you won’t have many sales. A small business
loan can help your business grow to make sure you will have the capital to supply your marketing budget.

 

Let’s see the following example:

María began her entrepreneurial journey in 2012 at the age of 24 in Chicago, when she
started her first business, Estudio 5: a small hair salon that has evolved into a high-end
establishment. María created and developed her own hair brand under the same name.
Estudio 5 is a hair care line for women, which she is actively marketing and distributing in
salons across her city.

María’s business was growing fast and she wanted to be able to use her resources as
efficiently as possible, so she obtained a loan of $50,000 to expand her business by opening
new hair salons across Chicago. Today, María has 7 hair salons in Chicago and her hair care
line is recognized as one of the best hair care luxurious brands in salons all over the U.S.
Every business decision involves taking a risk, but getting access to a small business loan has
never been easier. If you’re an entrepreneur in need of funding for your small business you
can apply for a loan as María did.

There are several business financing options available to small businesses. You just need to
know what is the best way and strategy to use a business loan. At the end of the day only you know whats best for your business.

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