When you own a small business, you always look for ways to help your company grow and succeed. While you are not always sure how you will accomplish this goal, you know it will require some extra cash—which you don’t have much of right now.
To make your company flourish more than ever in 2023, you can decide to apply for a small business loan. To get the most out of your small business financing, it is important to identify how you will use the money and how to get the cash advance.
For tips on both of these topics, please consider the following:
When it Comes to Small Business Loans, One Size Does Not Fit All
You might have hesitated to apply for a loan because you thought you would have to adhere to a strict payback schedule. While some small business loans are set up like this, lenders such as Zinch offer small business loans that are fast, secure, and flexible.
For example, the company’s Zinch Flex option is ideal for business owners who would like a simple yet flexible repayment schedule that is based on their company’s revenue. If you are comfortable with fixed payment terms, the Zinch Loan is another option. As a bonus, for new entrepreneurs, Zinch can also help create loans for businesses with no credit.
As for how to use the small business loan, consider the following suggestions:
1. Purchase New Equipment
No matter what type of small business you have, chances are good you use some type of equipment every day. One way to use your small business loan is to upgrade the equipment you already have. For example, if you own a bakery and it’s been hard to keep up with an increase in business due to a small mixer, you might consider investing in an 80-quart mixer. You can also replace any equipment that is breaking or in disrepair.
2. Stock Up on Inventory
If your small business relies on a steady supply of inventory—whether you own a fashion boutique, coffee bar or taco shop—you can use the funds from a small business loan to stock up. Speak with your vendors and ask about a discount for bulk orders, and then place orders for the products you use the most. This will not only help you to keep producing and selling the items your customers are looking for, but you also might be able to stay ahead of supply chain issues—which are expected to continue into 2023, according to KPMG data.
3. Expand Your Team
Another way to effectively use a small business loan is to hire more employees. If you struggle to fulfill orders due to a lack of staff, adding more people to your team will definitely help. With more staff on board, you may also be able to finally increase the hours you are open for business, expand your product selection, and you may even be able to spend more of your time focusing on how to grow your company.
Borrowing Money to Make Money in 2023
You have probably heard the phrase, “Sometimes you have to spend money to make money.” While this can definitely be true, in the case of small business owners, you often have to borrow the money first.
By working with a flexible loan company and obtaining financing, and determining how you can best use the money, you will go into 2023 confident that you can grow your small business to the best of your ability.
