Finance & Lending

 

05 31 2017

How to use a small business loan

05 31 2017

5 Brilliant Ways to Use A Small Business Loan Successfully

Small business loans are a versatile and powerful tool for many different types of organizations to draw on as they stabilize, secure and grow operations. There are many different applications for a small business loan, from industry-specific uses to very broad ones. Here’s a review of some the most common and useful ways small business owners can use their loans.

1. Managing staff and payroll needs

When you have a solid plan for expansion in hand and know that opening a second location, extending your hours or growing your existing facility will bring in more business, you want to act as soon as possible. However, if your business doesn’t have the cash on hand to pay for staff to fill vital positions during the additional time your business operates, you can miss out on the chance to expand and the many potential returns that action provides.

A small business loan can help your business with the financial side of hiring additional staff or paying existing employees to work more hours, including the substantial financial burden of overtime. It can also extend to providing training and other resources for your workers to ensure they provide the best experience possible for customers.

With a small business loan available to bridge the gap between increased hiring and increased sales, your business can follow through on plans for growth and reap the rewards that can arise.

2. Funding advertising and marketing efforts

If you know your business regularly leaves clients feeling satisfied and has a stable customer base, an impediment to growth may be a lack of general awareness of your venture in the local area or within your target market. Advertising and marketing are time-consuming and complex endeavors that aren’t always easily taken on by a small business owner or an existing staff member.

A loan for your small business gives it the flexible funds needed to tackle a wide variety of awareness-raising and customer engagement efforts. Depending on what you think will work best and potential work with a marketing consultant or agency, your company could target print advertisements, local radio and TV ad time, online marketing efforts, live events to attract customers and much more.

One of the best things about a small business loan from a lender like National Funding is the range of applications: Your organization isn’t constrained to unnecessarily specific or limited uses for the money lent. Instead, as long as the expense is legitimately related to business operations you can choose to follow a variety of different paths in terms of marketing and advertising.

3. Increasing inventory

If you have a steadily increasing stream of customers – or your existing base regularly buying more products than in the past – the last thing you want to do is run out of inventory. Depleted shelves don’t just create a negative visual for shoppers, that lack of merchandise can also leave them frustrated and walking out the door with a negative experience in mind.

With a loan from National Funding, your small business can ensure a strong level of continuity in the items you sell to customers and your company’s ability to stock them. This is important for businesses experiencing significant growth as well as those with major seasonal adjustments that occur each year. If your enterprise does most of its business in the summer, the last thing you want to contend with is a lack of available inventory.

Your small business loan allows you to shore up your supplies and can be applied as needed, whether to address an unexpected surge in demand or one that’s more predictable.

4. Taking on major, unexpected costs

As a responsible business owner, you have insurance policies in place and money set aside to deal with unexpected issues. But what happens when the event is so substantial or unanticipated that it stretches your finances too far? Everything from structural issues with a leased facility to a massive product recall can leave your business in a tough spot, even when insurance and other protections are used. There are plenty of less extreme but still severe unexpected costs as well, like major machinery failures and large tax bills.

A small business loan helps your business work through these major obstacles and come out relatively unscathed on the other side. Whether it’s a major and unpredictable financial obligation or the need to restock your shelves when replacements from a recall aren’t soon forthcoming, these loans are flexible and effective.

5. Growing and expanding your business

When opportunity knocks, you don’t want to turn it down. However, as a business owner, there’s only so much capacity that you and your team can handle. Sometimes you simply don’t have enough staff, equipment, materials or time to handle more work. A business loan can help with this debacle; use it to expand your business so the next time a new customer seeks out your services, you can happily oblige. This might mean leasing a new machine, hiring a new team member or investing in more supplies.

Bonus: Getting in touch with National Funding

Whether your business has an operational need to address in the short-term or a loan is required for longer-term growth, don’t hesitate to get in touch with National Funding. Our quick application process, reasonable lending requirements and quick timelines for providing decisions mean we’re uniquely suited to helping your business succeed. Fill out an easy online application today!
 

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General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

 

Text Messaging:

By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

  
The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.