A good commercial loan can be the key to expanding your business. Extra funding encourages growth and empowers you to stay ahead of your competition. But, to make the most of your loan, you need to use it wisely.
How To Plan For Your Business Loan
Using your money well involves careful planning and plenty of hard work. Before you even secure your funding, remember these crucial points:
- Make A Plan. The first thing you should do is formulate a plan. What will you use the money for? What lending specialist will you work with? Think through every point of your timeline, from connecting with a lending specialist to paying off your loan.
- Understand How Much Money You Need. Once you know what you need your money for, you’ll have an easier time determining the amount you will ask for.
- Stay On Top Of Payments. Keeping up with your loan repayments is extremely important. Be sure to manage your finances so you can make your payments on time.
What You Can Do With Your Commercial Loan
What can you do with your business loan? The best course of action for you will be based on your particular business and your current goals. Here are a handful of ways you can enhance your unique New Zealand business with a business loan:
Launch New Marketing Campaigns. Even if you have incredible goods and services, you could struggle if you aren’t marketing your company well. Extra funding can help you launch new marketing campaigns, expanding your business’s voice and reaching new customers.
Use clever marketing strategies to put your services in front of new potential customers. Online ads, social media campaigns, posters and more can all advertise your unique company. Consider using a mix of digital and physical ads.
Invest In New Equipment Or Technology. What kind of tools or software do you use for your daily operations? Chances are, you can upgrade your equipment or technology to boost production. New equipment can make it easier to efficiently produce your goods, and advanced software helps you stay on top of your digital tools.
Think about how you can use your commercial loan to invest in new tools to improve your production and efficiency. When you improve your operations, you can boost your profitability and pay off your loan in no time.
Manage Cash Flow And Working Capital. Funding from a loan can cover payroll during seasonal slowdowns, keeping your hardworking team paid even when profits are lower.
You could also use your money to keep up with supplier payments and restock your inventory. Keeping your supplies stocked keeps your operations running smoothly so you can stay afloat.
Hiring And Training New Staff Members. Could you use some extra help? Extra funding gives you the money you need to hire and train new people, boosting your team by bringing in new skilled members.
Take a moment to think about your current operations and where you could use more work. What kind of employees do you want to hire, how much would you need to pay them and how would you train them?
Securing A New Location. You need a good location to create your products or carry out your services. Property can be expensive to rent or buy, so consider using your commercial loan to acquire a new location for your company. Consider whether you should purchase or rent a property, as both have their advantages and disadvantages. Buying property gives you full control and ownership over a space, but it’s more expensive. Renting is good for temporary use and is more affordable, but you will have less control and you will need to keep up with payments.
Remember to stay diligent when choosing your new commercial space. Look around for good spots, compare prices and consult with your lending specialist about your chances of securing a loan for your property payments.
Developing Your Goods And Services. What kind of goods and services do you offer your customers? Thinking about what your company does and how you could improve.
If you create goods, then you could improve product quality by using higher-quality materials or redesigning them to enhance their features. If you offer services, then you could purchase tools to help you complete those services better. For example, a baker could purchase higher-quality ingredients, and a gardener could buy better gardening tools.
Aside from improving existing practices, you could also launch new products or offer new services. What else could your company offer? Reflect on services that are adjacent to what you offer now.
Securing A Commercial Loan With Spinach
Getting a business loan can seem complicated, but it doesn’t have to be – work with our lending specialists at Spinach to improve your chances. There are so many kinds of NZ businesses out there, and we’d love to hear about your plans.
Ready to get started? We welcome you to call us on 0800 SPINACH or reach out to us online.
Spinach: Let’s discover how you can grow your business with a loan.