A line of credit is one of the most flexible and convenient methods of funding for small businesses. Once approved, you can draw funds as you need them, and once the balance is paid, the same amount is available to you once again. If you don’t want the hassle and payment terms of traditional small business loans, here’s how you can use lines of credit to benefit your business.
Marketing is essential for the modern business, but a lot of marketing tactics can really eat into your budget. If you’ve done your research, located your target audience, and run the appropriate tests, it may be time to invest in a serious marketing campaign. You may have found an amazing company to partner with for promotions, but they expected a larger, more expensive investment than you had in mind. You can use your funds to pay for ads, a marketing expert, and more. You may even want to hire some independant contractors to handle content creation and posting schedules for you.
2. New Employees
Company growth almost always requires some sort of investment, and a common investment is new employees. Maybe you need more hands to assemble products, or maybe you need more skilled professionals to head new departments.
If you’re not looking to hire new employees, maybe you want to invest in the workers you already have. You could send current employees to classes or conventions to learn new skills or current trends. You could send employees to conferences to speak on panels or teach a class, further establishing your company’s place within your industry.
3. More Inventory
If you’re already seeing steady growth, it can be difficult to keep up with demand. A line of credit can let you purchase more materials or more inventory so you can keep customers happy. A larger inventory may mean you can start selling wholesale to other companies, further broadening your customer pool.
If customers like a certain color or specific product, this could indicate the viability of a new line of products. Extra funds could be allocated to creating new prototypes or buying new equipment.
No matter what industry you’re in, chances are new lines of credit could help you grow your business. If you conduct the right research, gather your financial data, and present your company’s goals in a compelling way, you may qualify for this convenient funding tool.