How to Use a Business Line of Credit for Growth
In this post, we’ll list a few ways that you can use your line of credit to expand operations, kick-start growth, and optimize revenue. It is possible that some of the ideas mentioned in this post won’t be included in your line of credit’s terms, as some companies have usage limitations. Therefore, you should review your line of credit terms prior to pursuing these initiatives.
Order Inventory in Bulk
Did you know that buying in bulk can save you money in the long term? When you have a bigger budget due to a line of credit, you can invest in mass quantities of the items you use or sell. Ultimately your cost per item will drop, so you’ll make a better profit!
Hire More Employees
Many business owners struggle to recruit employees to fill pivotal positions because they can’t afford additional payroll. If you’re understaffed, this can be detrimental to your business, and could affect how you conduct business. If you receive a line of credit, you can utilize this money to meet payroll, and invest in building a strong team.
Marketing your business enables you to spread the word about your products or services to potential customers. Testing different strategies and optimizing your acquisition formula is key to saving time and money. Once you receive a line of credit, you can pay for sponsored Facebook content, advertising space in local publications, or creative flyers. The more that you advertise, the more you’ll be able to understand your customer base and what resonates with them.
Are you using an outdated time-sheet software? Or perhaps your computer is becoming unresponsive? Don’t hesitate to use your line of credit for improving your business’s technology. Save yourself time by upgrading software, buying new programs, and purchasing new computers and other tools. You’ll find yourself feeling more productive when you have access to state-of-the-art technology, instead of outdated models.
Purchase New Equipment
Most businesses require at least one type of equipment. If you own a restaurant, it’s an oven, or if you run a construction business, it’s a tractor or loader. When your business has broken or outdated equipment, your productivity will likely suffer. To avoid this, use your line of credit to purchase new pieces of equipment/
Repair and Improve Your Facilities
Boost customer satisfaction by upgrading your business’s interior décor, bathroom, and other frequented spaces. Use your line of credit to fix that ugly carpet stain near reception, or purchase comfortable couches for waiting areas (if applicable). When customers visit your business, they’ll be greeted with a comfortable, visually appealing environment!
Invest in Your Business’s Future
Overall, we recommend utilizing your business line of credit to ensure your business’s future. Whether it is upgrading necessary technology, hiring an all-star employee, or investing in marketing materials, your line of credit should enable you to pursue growth. Becoming complacent won’t earn you more customers and furthered success; you should always be considering how you can improve your business. Luckily, with a line of credit, you can make these improvements a reality!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.