Even thriving businesses sometimes experience cash flow gaps. When these occur, it is important to have access to additional funds so that your momentum of growth doesn’t diminish. Business lines of credit allow you to borrow from a predetermined amount in times of need and replace those funds when conditions stabilize. Here are some ways that you can take advantage of this form of financing.
If you’re in the midst of a seasonal slump but peak season is approaching, you can use a business line of credit to prepare by purchasing additional inventory. Lines of credit also give you the funds to take advantage of off-season bargain prices. When you’ve profited by full-value sales of the items you purchased on discount, you can repay your line of credit.
Invest in Employees
Sometimes you may see the need to hire more personnel to meet your plans for growing your business. A business line of credit allows you to accomplish this goal. If your staff is sufficient, consider investing in employee development such as mentoring, training, perks, and incentive programs. Additionally, if you’re in the midst of a slow season, lines of credit allow you to continue to meet payroll so you don’t lose valued help.
Obtain Additional Equipment
The business growth you’re planning may be contingent upon purchasing new equipment or upgrading the equipment that you have. Lines of credit allow you to obtain the equipment you need and repay the funds you use from the profits you gain as a result of your investment.
Amplify Marketing Efforts
In order for your business to grow, potential customers have to hear of your existence. Use your business line of credit to focus consumer attention on your company. For instance, increase your social media presence, hire writers to prepare content for your blog, boost email marketing efforts, and purchase advertisements in other media.
For more advice on business lines of credit, contact Integrity Financial Capital.