Grow Your Business with Unsecured Business Lines of Credit
A line of credit is a very helpful tool for many businesses. In essence, it allows them to borrow money when they need it and pay it back when cash flow is good. So how can unsecured lines of credit help small businesses? There are several ways they can stimulate growth; here are the four most common.
Increase Inventory and Improve Equipment
For any business that manufactures, produces, or repairs (and in one way or another, that’s most of them), inventory demands and equipment upgrades are never far from top-of-mine. Unsecured lines of credit can be used to expand production or invest in better equipment.
Elevate Your Marketing and Advertising Plan
If product, brand, or location awareness are weak spots in your business plan, funds provided by unsecured lines of credit can go towards marketing and advertising to show value and establish expertise in your business’ category. In addition to purchasing traditional media like print, television, and radio, many of today’s advertisers are using targeted media buys on social media and websites to get their message out to the exact demos they seek with greater accuracy than ever before.
Invest in Staff
If your need more people on your workforce to get the job done, unsecured lines of credit can give you the dollars you need to hire additional personnel. They can also allow you to pay your existing employees better, or offer expanded benefits. The upside of this is obvious; an engaged staff will be more likely to buy in to the business’ mission and goals. The benefits of creating and fostering a positive workplace culture really cannot be overstated.
Finally, while no business owner or manager wants to think about it, the reality is that most businesses experience slow times somewhere throughout their year. When there’s less (or even no) money coming in, it becomes difficult to meet payroll very quickly. This is where unsecured lines of credit can help considerably by offering merchants a “safety net” to provide payment to employees and vendors by bridging the gap in a business’ slow season.
If this sounds appealing to you, the best thing you can do is start the conversation with a financial institution right away. It is best to apply for a line of credit when business is steady, rather than when it is slow. If you can secure it before you need it, you’ll be ahead of the game!