For many businesses, 2021 will be a year for recovery, and one great way to accomplish that is with a small business loan. Small business loans are funds borrowed from a lender, repaid with interest, and it’s one of the most common ways to fund a business. Especially with the no-interest and no-minimum payment terms with SpotOn Capital, a small business loan now can help you fund changes now that will later translate into a high return on your investment. If you don’t know where to start, ask yourself these two questions: “How much money do I need? And, what do I need the money for?” To help you answer these questions, here are the four most common ways a loan can help your business.
1. Cash Flow
Maintaining cash flow has been challenging during the pandemic, with capacity restrictions, shelter-in-place orders, and rapidly changing customer habits. A loan can be used for your regular operational costs and can help your business bridge cash flow gaps. When you keep cash flowing through your business, you can continue to bring in new customers and drive revenue to make up for losses.
New equipment can be expensive, but sometimes it’s necessary to do the job. With technological innovations improving each year, some equipment can also simplify processes and offer safety while COVID-19 still lingers. In addition, broken or faulty equipment can make you lose customers who need your services, costing you more in the long-term. A loan can help you manage the cost and improve the experience for your customers by upgrading your business with the equipment you need.
3. For Inventory
Inventory is necessary, and it needs to be updated and replenished frequently. Particularly, if you were forced to reduce your product offering or services to get in line with restrictions, getting a loan represents the opportunity to go back to normal operations or invest in new products or services to stay ahead of trends and customer demand, which drives revenue for your business.