When it comes to Small Business Funding, or as some would call it, a business loan – there are many benefits if used correctly. In this blog post, we will highlight a few benefits of business funding which will hopefully assist all existing and future Fundrr family members.
We know that if you are a Small Business Owner, you have to do everything in the business and you tend to get extremely busy. So, with that being said, let us not waste further time and jump right into it.
What are some of the benefits that one can expect from a business loan or business funding for your SME:
Many of the SME owners we encounter want to grow their business, but that growth can require significant cash investment/injection. Small business funding or a small business loan allows you to invest in your business without tying up your cash. View it as leveraging off other people’s money to grow your own business. But, it’s important to remember that it is “other people’s money”. It can allow you to invest in marketing campaigns, hire additional staff, expand to a new location and more.
Meeting unexpected challenges and opportunities
Running a SME can be, and most times IS, full of surprises. A small business loan or small business funding can minimise the probability that you don’t miss out on an opportunity just because you don’t have the right amount of capital on hand, or that you can handle unexpected expenses when they come up. For example, a short term small business loan or short term small business funding, could be a very good opportunity to purchase stock for example, at a discounted rate that will churn quickly and allow your SME to maximise and convert on additional profits, or even recruit more employees to meet increased demand.
Investing in renovations and other projects
On certain instances in the SME lifeline, scaling up a new project usually requires upfront costs that might surpass a SME’s ability to cover with their current cash flow, but will be recouped in 60 or 90 days as their customer(s) pay their invoices. This is very standard in a B2B (Business to Business) business model. In that scenario, the ability to get in and out of the financing quickly at a lower total ZAR and nominal cost could make the most sense, rather than making payments on a longer-term loan or funding facility for several years.
Bridging seasonal cash flow gaps
Many seasonal SMEs at times borrow to meet short-lived cash flow demands during low turnover periods that occur between their busy seasons. Doing so, forces the business to ensure that it has sufficient cash flow during that down period to make the larger periodic payments often associated with a short term business loan or short term business funding.
When SMEs require certain equipment, which is necessary to the operation of your business, a SME business funding facility, can help get the operations moving again without a traditional facility from the bank or whatever formal institution that might tie you in to a few years.
There are many more benefits of injecting much needed funding into your small business to fuel growth, but we believe that the points above are well diverse in the Fundrrmentals of your business.
Understanding your business and giving it that ‘jet fuel’ needed in the form of short term business funding from Fundrr, will allow you to reach new heights. You can sign up, play around with our obligation free funding calculator and even get a quote. And, once you are ready, you can apply with us in less than 7 minutes and receive an answer back in 24 hours or less. It’s that easy.