Small business owners need working capital to deal with ups and downs of cash flow, pay for operating expenses, and invest in growth – but they usually don’t need the same large amounts of capital that big companies require. Instead, many small businesses can get by with smaller “micro loans” in amounts of $50,000 or less. Even a small amount of money is often enough to make a big difference for a small business.
Here are a few ways that small business owners can use micro loans to help their businesses succeed:
Pay for Marketing Costs
Getting a micro loan is often a good source of funds to help pay for new marketing expenses – whether it’s a new marketing campaign, a revamped website, Pay Per Click ads, sponsored posts on social media, or more. If you want to try some new marketing techniques, it’s often good to have a fresh influx of cash to help pay for your marketing work – after all, “you have to spend money to make money.” Ideally, your marketing will pay for itself!
Buy New Equipment
Do you need to buy new business equipment? Whether it’s new machinery, new office furniture, a company car, or new business laptops or mobile devices, your business will be more productive if you have the latest equipment to help you do your work. Depending on your needs, getting a micro loan can often give you the necessary funds to buy (or lease) new business equipment.
New inventory is the lifeblood of any small retail business. Small retailers are often experts at finding just the right inventory at just the right time – but what if you spot a great deal on inventory, and you don’t have enough cash on hand to buy it from the wholesaler? This is where a micro loan can benefit your business – micro loans give you a fresh influx of cash that you can use to buy inventory to sell to your customers. Whether you’re getting ready for a busy season of sales, or just trying to capitalize on a one-time offer or a can’t-miss price, micro loans give you flexibility to buy more inventory at a time of your choosing.
Micro loans also make it possible for you to boost your business’s productivity and reduce operating costs my making use of the latest technology. For example, there are many great online tools and small business software packages available to help your company operate more efficiently. With a relatively small investment from your micro loan cash, you can improve your business’s accounting, inventory management, marketing, customer retention, and many other specific business goals.