At Lendified, we are often asked what our loans can be used for. This is understandable since some forms of small business financing in Canada come with restrictions. However, we allow you to put your money toward anything you need to grow your business.
Here are 5 examples of ways you could use your financing:
1) Physically Expanding Your Business
If your inventory has surpassed the amount of space available for storage or your employees are getting creative to work comfortably, then expanding the physical space of your business could be a good use of your business loan. Just make sure that the investment leads to increased productivity, profits, or both.
2) Purchasing Equipment
If new equipment is needed to extend your product or service line or increase the efficiency and production of what you currently offer, then a business loan can help you cover the up-front cost and meet your existing obligations.
3) Upgrading Inventory
Whether your business sells the latest clothing or the coolest new technology, there is likely a need to constantly update your inventory to stay relevant. For many retailers, inventory is bought in bulk to prepare for an upcoming season, meet increased demand, or take advantage of bulk pricing. If you need to buy inventory in bulk then small business financing can help you better manage your cash flows and take advantage of the opportunities you’ve spotted.
4) Hiring New Staff
Hiring new staff can be an exciting and daunting challenge to take on as a small business. On one hand, the expansion of your staff can mean an increase in your company’s productivity, profit and competitiveness. On the other hand, the cost of onboarding, training, and wages of new staff can leave a small business in a position of financial strain until the new team members reach the stage of making a positive financial impact on the business. Small business financing can help bridge that gap and allow you to hire new staff without worrying about the up-front cost.
Not all forms of business financing are equal. For example, a short-term loan can cost up to 60% less than a merchant advance. If you have existing business financing that is expensive or complicated, then you should consider other financing options. At Lendified, we often refinance loans for small business owners who have financing with merchant advance companies or other online lenders.
In summary, there are a variety of ways you can use small business financing to grow your business. We recommend you take the time to carefully understand your options and their true cost. If you are interested in getting a free quote from Lendified click the button below. Our application takes less than 10 minutes to complete and our loans are more affordable than other alternative financing options.