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Keeping a business running and meeting business objectives is no easy task. Pay the bills and meet the demands, all without disrupting your company’s cash and growth.
Therefore, thinking about lending in an organized manner is super important to help in business growth.
According to data from the Brazilian Institute of Geography and Statistics (IBGE), only 10% of entrepreneurs can build a business with more than 10 employees, and of this total, only 1% of enterprises thrive with growth rates of over 20% for three. years in a row.
That is, you need detailed and strategic planning for your business to succeed. In addition, when starting any venture, you need quick access to working capital, that is, money to support the business continuity.
In addition to the initial investment, from time to time the market may require funding to relieve times of crisis, expand the business and enhance the company’s work.
In this regard, many business owners consider taking out an MCA from OakPark.
There is a wide range of loans of all types on the market today, involving different types of financial products for credit, with speed of analysis and approval.
The entrepreneur can choose the deadlines (short, medium or long), thinking of a well-defined objective of growth of the company.
But it’s always a challenge knowing where to start, as there are so many options on the market.
This allows you to find different specifications of each loan, including eligibility criteria, interest rates, and overall costs.
Therefore, you need to know how to choose the best option for your current need, as well as the loan amount, so that financing gives the necessary boost to your business, with profitability growth and competitiveness.
The Key Advantages of Business Loan
It is a mistake to think that lending is only beneficial for micro and small businesses. Any kind of business can plan to take the financial resource for expansion. Who wants to grow is in a hurry and the best credit option is one that quickly meets the need of those who undertake.
So loans can help in many ways, from increased cash flow to hiring new employees.
What are the main advantages of getting a business loan?
Acquisition of new equipment
Often, to keep up with market growth, it is necessary to invest in new equipment, technological devices, and cutting-edge systems. After all, technology has become an ally in the success of enterprises.
Thus, a loan can help in the purchase of high-performance machines, such as a professional 3D printer, used to manufacture high-detail parts. It is suitable for companies that produce accessories, such as displays, ornaments, and even toys.
Ahh, but it doesn’t stop there! Not only technological equipment can be purchased with financing, but also machines that help reduce production costs, especially the consumption of electricity.
An alternative for companies is to invest in a solar power generator, which offers financial emancipation from electric utilities and enables the use of a renewable and clean source.
Preventive and corrective maintenance of structures or equipment
Maintaining the operation of old equipment as well as the structural conditions of the business is also something that can be done with the loan. It is very important to invest in preventive maintenance planning and, in emergency cases, corrective actions (repairs and repairs).
So Loan May Be The Right Solution For Forklift Maintenance broken, as a way of guaranteeing the conservation of the equipment and, still, not to disturb the works within the sector. Investment may include the price of repairs, the cost of replacement parts and the work of the professionals involved.
In the case of structural renovations, the entrepreneur may request the services of a building painting company, for the renovation of facades, external and internal environments of the company.
Maintaining the conservation of the place is a way to attract new customers and retain old ones since everyone likes a beautiful, pleasant and cozy space, isn’t it ?!
The same goes for cases where it is necessary to quickly repair a coating, electrical, hydraulic system and even invest in structural reinforcement. All properties are subject to the action of the weather, so it is recommended to have financing available for unforeseen events.
Financial Inventory Management
A credit line for equity or specific financing can alleviate business owners’ concerns about cash flow. In times of low inventory in a season of high sales, financial aid can make the cash positive, avoiding those famous headaches. Messing with finances is always a matter of concern.
In addition, loans help to avoid cash flow spikes and declines, especially during seasonal sales periods. In this way, credit lines help relieve the stresses of low seasons.
Hiring New Employees
In large and long jobs, such as construction projects ( construction of buildings, houses, among others), it is necessary to have many employees and thus increase the costs involved.
In these cases, loans can assist in business expansion, including hiring part-time, full-time workers or freelancers.
Micro, small and medium enterprises can also benefit from employee hiring, especially for rapid business expansion.
And all sectors can use the funding feature for this purpose, from industries to collective food businesses and trades.
Participation in events
Attending conferences, fairs, get-togethers, presentations and other corporate events can help grow your business. This is because these spaces offer the possibility of attracting new audiences and partners, in addition to:
- Present a product and/or service to many people;
- Invite a different audience to know your business;
- Enable the visualization and analysis of competitors;
- Foster new innovation ideas for your business.
For this reason, many companies use loans to invest in a corporate event stand and thus remain prominent in the market.
How to get the right loan for your business
Given the many advantages of credit lines, we can understand why so many companies seek financing. Here are some tips to help you choose the best solution for your business!
Set your goals, the purpose of the money and the specific value your business needs. These three aspects need to be very clear because with them you can check if the loan is really the best option according to your plans, or if it is better to wait a while and save.
Check Your Personal Finances
When applying for a loan, the creditor will evaluate your Individual Taxpayer Registration (CPF) as well as your financial history. That is, it is good to be sure that your name does not appear on the Credit protection bureau. This analysis is a way for the lending company to have loan collateral.
According to the Small Business Financing report, published in November 2019 by the Brazilian Micro and Small Business Support Service (SEBRAE), one of the main difficulties in obtaining a loan concerns the lack of collateral for the bank.
It is therefore interesting to check how your finances are and look for viable alternatives.
Examine payment terms
Avoid getting a loan that does not offer minimum conditions for you to pay the installment. Also, opt for credit lines within your budget, according to interest and total cost.
This means that if monthly installments are costly to plan, look for alternatives or try to negotiate term extensions.
This text was originally developed by the Investment Guide blog team, where you can find hundreds of informative content on various segments.