Don’t be afraid to utilize short term loans with your new business, the infusion of necessary capital can make all the difference!
Invest in Marketing
When launching a new business, it is important to introduce your brand to the world. Social media marketing is the best way to get to your client’s attention, and your reach can be amplified using Facebook’s and Instagram’s boost feature. While effective, these ads can be costly, especially in the beginning as you adjust the parameters to reach your ideal audience. Using short term loans to cover the cost of advertising will keep your cash liquid, and give you the option to invest in your product or equipment to improve your service.
Purchase more Inventory
If you are just starting out, it may be difficult to invest in inventory and cover day-to-day operational expenses. Ideally, you want to keep inventory funds separate from operational funds, but this can be challenging because when bills arise, they must be paid. Using short term loans to purchase inventory is a great way to use of capital because inventory is the blood of your company. If you run out of inventory, you will not be able to survive, and your customers will find somewhere else to buy your product. Using short term loans to purchase additional inventory will keep your company alive and healthy.
Cover Payroll
It is not uncommon for new small business to borrow funds to cover the cost of payroll expenses. Since payroll is a recurring expense that varies based on the hours and number of employees, new business can struggle with balancing the timing of revenue and the obligations of payroll. Short term loans can buy your business additional time to generate the revenue to cover payroll, therefore keeping you stress-free!
Purchase New Equipment
If your business is in the service industry, you depend on equipment to service your customers. Using short term loans to replace or repair equipment will improve efficiency, restore customer confidence and boost future revenues. Using short term loans to fund equipment purchases is a great way to grow your new business.
Pay company taxes
As a new business you have several tax liabilities including sales tax, state income tax, federal income tax, payroll tax and other specific taxes for your city or county. These liabilities may be higher than you expected and can be intimidating if you don’t have liquid cash. Short term loans can allow you to buy additional time to generate the revenue needed to pay these obligations, not to mention they and can save you money when comparing loan interest rates to the interest and penalties involved with paying these debts late.
Learn more about short term loans and talk with us today at www.Financingyourway.com!