It’s a true statement that there is a high percentage of small business that unfortunately do not make it by the first couple of years and they go into administration or dissolve. This is the sad state of reality. This high rate of failure happens for many reasons, but a lot of this could be put down to financial stability. There is a lot of competition out there when it comes to most industries; therefore, keeping afloat will need base funds that may cover things such as marketing, rent, salaries and IT as examples. If times get tough, then there are financial options available to you which can include looking at options for unsecured small business loans. Here are some of the benefits this may give you:
Believe it or not, for you to get a good level of loans from banks or other institutions you require a credit history for them to understand your risk. If you then have a small business and you have never had a loan before this may be an excellent decision to gain some credibility. This could go the other way and negatively affect you if you then do not stick to the repayment terms that you agreed with the loan company. Failure to make on-time payments would then show up on credit reports, and subsequently, you would be highlighted as a potential risk to other companies if you approach them for funding.
If no-one knows about your business, then no-one can take your services. If things are slowing down, then it may be an excellent option to get some funds from somewhere to invest in marketing. The marketing can be spent on things like internet presence, SEO rankings, social media ad-spend or other alternatives. With a good marketing strategy then you will hopefully get much more than you spent on the activity back.
If your office is looking scrubby and it is a place where customers come to, you may wish to consider giving it a makeover. In doing so, this will not only be a more pleasant place for your employees and customers, but it will potentially increase the value of your office overall. Doing this should not be done as an ad-hoc knee-jerk reaction. You will want to ensure that you get value for your money. You may even consider getting someone external to cost out the project for you and complete it all on your behalf, so it is a professional job.
You may require a temporary cash boost due to either late payment from customers or a minor dip in your sales. If you are confident that you have a recovery plan to get to a sustainable position once again, then the small business loan may be just what you need. This temporary cash boost doesn’t need to be a significant account of money but maybe something as small as £10k to keep things ticking over.