Many entrepreneurs mistakenly think loans are only beneficial in the initial stages of a business. While it’s true that start-up capital is important to get you on your feet, there are innumerable advantages to getting a business loan at any stage of your business journey. It’s about recognising exactly where your business is currently at, where you envision it’s headed, and how you can get there faster.
Here are some ways you can make a business loan work for you:
1. Get your new business or project up and running
Many new businesses need a helping hand when it comes to start-up costs, and a business loan is the perfect boost to give you access to the funds you need to finance these, or other costs involved in launching a new project. What’s more, you’ll be able to cover your expenses without relying on investors, enabling you to remain in complete control of your business growth.
2. Expand your existing business
Expansion is a natural step in your business’ growth journey. Depending on your business and industry, that could mean anything from: adding additional space to your current location, opening a new location, or adding related products/services to your existing offerings. Financing can give you the cash you need to make this happen, with the potential to double or triple your total revenue.
3. Increase your working capital
All businesses need working capital – the money used to manage day-to-day business operations. Regardless of how great your business model or strategy is, it can still take time for the business to become profitable. This is where a loan can satisfy operational costs until your business earnings reach a certain volume. With extra cash on hand, you can cover any sudden expenses, instead of reconsidering or abandoning your strategy.
4. Buy inventory and equipment
Using financing to buy inventory in bulk at a cheaper rate, or new equipment – which you’ll own outright and permanently – helps you get a competitive edge for your business to reach the next level. Financing new equipment can boost your operations and provide customers with additional value; while financing additional inventory can ultimately yield a higher profit.
5. Hire all-star talent
Hiring the best employees can take your business to the next level, however, it is an expensive exercise footing the bill to cover the hiring process, salaries, insurance, equipment, and more. Employers are always vying for top candidates, so fighting to keep employees on board can help your bottom line. A loan gives you enough wiggle room to hire the right employees, and pay for other expenses related to expanding your team.
6. Seasonal slump booster
As cash flow decreases during a seasonal slump, financing offers you the extra cash to continue improving your business until it picks up again. That means, financing allows you to keep the momentum going during off-periods, while fully capitalising on opportunities.
7. Improve your business credit
Contrary to popular belief, a loan – if managed well – can improve your business credit. Ensure you make the repayments on time and don’t default on them. This will eventually translate to building your business’ positive credit score, giving you more options for the future.
In the current economic climate, businesses have hit hard times, or have met unexpected expenses that weren’t accounted for. While it’s understandable that a business loan might be needed urgently to help you bounce back or to get you through tough times, it’s important to shop around for the most reasonable interest rates and the most trustworthy lending partner. If you can secure these and negotiate the best payment plan with a potential lender, financing might just take your business to the next level!
Start growing your business with INFT.’s Business Cashline. INFT. is a one-stop platform aimed at reaching out to and filling the financing and banking gap of the 41% (out of more than 70 million) underserved MSMEs in the Southeast Asia region.
Therefore, our flexible and secure ecosystem offers more competitive and attractive pricing than banks and other financial institutions, and best-in-class financial solutions to empower entrepreneurs to focus on their core business. We take care of the pain points, so MSME owners can focus on what matters - running their business!
INFT Business Cashline powered by Cash-IN-Asia, our very own in-house financing firm, we aim to fill the financial gap small businesses often face, because every business deserves a better financial future. And our simple and easy application process provides a convenient financing solution to meet your growing needs.
Apply for a business cashline now to kick-start your business journey to exponential growth.
DIGITAL FINANCE AT YOUR FINGERTIPS
A Simpler Way to Manage, Access, Send, and Spend Money for Your Business.
Consumer advisory – Payment Services in Singapore are regulated under the Payment Services Act 2019 (the "PSA"). Remittance is powered by Wallex Technologies Pte. Ltd ("Wallex"), who is regulated by the Monetary Authority of Singapore and is a licensed Major Payment Institution under the PSA for the provision of Cross-border Money Transfer Services in Singapore (License No. PS20200433). Funds (that constitute "relevant moneys" (as defined under the PSA) received by Wallex shall be held on your behalf in a trust account opened with a Safeguarding Institution as required under the PSA. Visa cards are issued and powered by NIUM Pte. Ltd. (formerly known as INSTAREM Pte. Ltd.), who is regulated by the Monetary Authority of Singapore under RA No. 01454 and is a major payment institution under the Payment Services Act No. 2 of 2019. Virtual accounts are powered by PayrNet Pte. Ltd., under the Railsbank group of companies, who is regulated by the Monetary Authority of Singapore and operating under an exemption under the Payment Services (Exemption for Specified Period) Regulations 2019. Business Cashline is powered by Cash In Asia Pte. Ltd, who operates as an excluded moneylender under the Moneylenders Act (Cap 188).