How the right loan can grow your business
Growing a small business doesn’t happen overnight. The process takes time, a lot of hard work, and access to the right tools and services when your organisation needs a helping hand. A great example of this is a business loan, which could provide some extra financial muscle when you need it most.
In this article, we’ll be exploring how the right loan can help grow your business, and what to look out for when deciding which loan best suits your needs.
How a business loan can help
In order for a business to grow, it’s often necessary to make an investment for the future. One example of this could be purchasing new equipment in order to expand your organisation’s ability to produce a product or provide a service. The challenge, however, is finding the money to make these investments – a tricky task when margins are tight. Alternatively, you may need to purchase additional inventory, hire new staff or expand your premises – all of which may put a considerable strain on your organisation’s finances.
These are exactly the types of situation where a business loan could help, by providing you with the additional funds required to finance your growth. The obvious benefit of a business loan is that it allows you to move quickly and expand your operations without spending months or even years saving.
Finally, there are business overdraft loans that provide a consistent line of credit. These allow for more flexibility and give your organisation a safety net in the event of a poor month where you might be running a little low on funds.
What to look for in a business loan
So, it’s clear that a business loan can be a great asset to organisations looking to expand, but what should businesses be looking for when deciding which one is best for them?
If you’ve ever applied for a personal loan, you’ll be familiar with some of these factors, but it’s still important to understand what they mean from a business perspective.
- Interest rate: As with any loan, perhaps the most important element to consider is the interest rate. This will change depending on the type of loan you select, and will affect how much you’ll need to pay each month.
- Fees: Some business loans come with monthly fees and establishment costs. In order to keep your business overheads low, it’s important to look for a loan with low, or no, fees.
- The approval process: Many businesses decide to take out a loan in order to take advantage of a specific opportunity. In these scenarios, it’s vital to be able to act promptly and secure a loan as soon as possible. Here at Beyond Bank, we make sure that our business loan approval process is as streamlined as possible, in order to quickly provide our customers with the funds that they need in order to take advantage of an opportunity to grow.
By considering all of these factors, you’ll be able to work out which loan option best suits your needs. For example, if you know that a particular investment will substantially increase your organisation’s income – such as a piece of new equipment in a manufacturing business – you’ll be able to select a loan with a shorter repayment period and a lower interest rate.
To find out more about business loans and which option suits you best, contact Beyond Bank today.