So your business has grown to the point where it’s time to expand? Congratulations, this is a huge milestone for you and your business! When you apply for an unsecured business loan and get that cash in your hands, it can be tempting to spend it on things unrelated to your business, but this isn’t wise. The money from your unsecured business loan should be used to expand your business and keep up with your competitors, it certainly shouldn’t be used for personal purposes. Here are some of the smartest ways to use the cash from a business loan.
There comes a time in every business when you need to hire staff to help you run the business because sorry, but you cannot be a jack of all trades forever! Especially if your business is growing rapidly. We have seen many business owners use a portion of the money they receive after applying for a business loan to hire employees and what a difference it makes to the growth of their business. Delegate tasks to your new employees while you focus on the day-to-day operations and finances.
Upgrading or Expanding Your Premises
Has your business outgrown your current premises? Whether you’re still working out of your garage or your current premises can no longer support the rate at which your business is growing, expanding your premises is an important step in growing your business further. Use a business loan to put down a deposit on a new premises or to do renovations and extensions to your existing premises.
Demand exceeding supply is a great problem to have but one that needs to be addressed ASAP to avoid your customers going to your competitors. Use a business loan to buy more stock for your business, particularly the stock in high demand to ensure fast turnaround times and great customer service to keep your customers happy.
Investing in New Equipment
If you’ve used the same equipment since your business started, it may be time to look into upgrading. From your computers and software to factory equipment, new equipment can improve your output and thus turnover in the long run.
Buying Company Vehicles
If you have been making deliveries yourself up to now in a personal vehicle, it’s probably time to invest in a company vehicle and employ a driver. This is especially true for companies that are making daily deliveries. Your own company delivery vehicle will provide you with more flexibility than relying on a courier company.
What do you need a business loan for in order to expand your business? Before you apply, check you meet the minimum requirements, strictly NO start-ups.