It often takes a financial investment to realistically meet your business growth goals. For many, a business loan is a great way to responsibly grow your business. Here are some tips on how to use a business loan to promote growth.
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Is your business in a position to finance its growth?
A common misconception is that loans are only for businesses when profits are down, but that is not the case. While a loan might help during a lull, even stable and prospering businesses can benefit from having quick access to capital to finance your growth plans and opportunities.
The key for any business that is looking for a business loan to support growth is a clear plan. Ask yourself the following: Why do I want a business loan? It might seem like an obvious question to ask, but it is an important one that will ensure you are taking the appropriate steps from the get-go.
Common ways to apply a loan toward growth
How you fund your growth is up to you. And while you know your business better than anyone, it is always helpful to consult with your team and even outside advisors. After planning for your immediate and future goals, you will be able to start using it toward your growth. Here are a few common places we see our members use a loan toward their business's growth.
1. Marketing
If your business only had some more exposure or the right sort of marketing materials, what would it be capable of? Unfortunately, the marketing budget is often seen as one of the easiest to neglect. While there are budget-friendly ways to market your company, a successful campaign more often than not requires significant funding to get off the ground.
2. Equipment
Whether you need equipment you've never had access to before or you feel that it's time to update your old equipment, financing can be a great solution. By avoiding up-front purchasing costs, you can protect your bottom line while making impactful changes.
3. Expansion
If your company is set to scale, it will take some capital to get there. Whether adding another location, expanding into a new market, or simply growing the team in a bigger place, the upfront costs do not have to prevent you from your goals.
Is a business loan right for you? Think about what you would do with that money and reach out to a BECU Business Specialist today.
Learn more about business financing options with BECU.