7 Reasons That You Should Consider Saving, Sustain, or Grow Your Small Business
Operating a business requires capital and a constant supply of money to replenish financial needs. Finance in business could be from your provision or a business loan; either way, pursuing a business is ideal, especially today, where cash is hard to come by.
Getting a business loan sounds frightening as the idea could be risky for beginners, but for businesses that are not afraid of the risk, whether they are small or large, the benefits of small business loans are the glitter on top.
7 Reasons to Get a Business Loan
Different lenders offer various loan options on multiple platforms, which is why applying for the perfect loan type for your need for finance in business is necessary.
Here are the seven benefits you should consider in getting a business loan.
1. Aids in the expansion of the business
Having additional capital is essential when business owners think of expanding their business. Finance in business is necessary to seek operations in other communities while keeping the quality of the product or service.
Targeting a new market is costly, and the benefits of small business loans could provide enough for good promotions and other marketing needs.
Blend.ph requirements in loans include that the minimum existence of the business is at least one year. Suppose you are considering getting a business loan but could not fill this requirement, blend.ph offers a personal loan that is enough to launch a business.
2. Improve the Credit Score
Banks and lenders look for borrowers with a higher credit score or a credit history summary. To improve this number, the borrower must be an effective payer, have a lengthy credit history, and not use credit over the extended limit.
Loaning from a trusted lender improves the loan credit score, where a higher credit score means a higher chance of lending a more considerable sum or ease of the loaning process. While loaning secures your needs to finance in business, improving this would mean that you effectively pay your bills on time.
The awareness of the use of credit and responsible business loans is an effective characteristic. However, not all people have the time to study the ins and outs of this ideology. That is why GritPH is there to help people who need financial advice, whether saving, investing, or earning.
3. Helps in securing Stocks
Seasonal businesses continuously need to buy stocks or inventory. Buying things ahead of the season helps in walking one step ahead of the competitors who compete on the busy days when acquiring the goods is a hassle.
Retailers are one example of a seasonal business, and they are susceptible to fluctuations as their business is highly affected by the changes in the season. Acquiring stocks that are expected to gain popularity in the next few months requires capital, but it would be impossible if a business has yet to profit with the supplies on hand.
Planning things ahead of the season and preparing the items months before the competition is a secured revenue.
4. Aids in Equipment Purchases
The need for equipment is a continuous need for money, primarily when a business relies heavily on technological tools. The benefits of small business loans assure the borrower that they would have the necessary equipment while allotting a portion of the capital to other needs.
Maintenance of broken equipment vital to the business is also one of the benefits of small business loans. It would also help faster process the products and services, leading to a quicker release of the items or services sold.
5. Save on Taxes and High-interest rates
Taxes limits profit, and it is alarming to see that the taxes business owners need to pay on time increase when they have already divided the capital to other business needs.
Loans are tax deductible which is the expense that is deducted from business income before the taxation as they are ordinary, necessary, and reasonable. If you are worried about the interest rate, looking for a loaning platform with lower interest rates is a top priority.
Reasonable interest rates are one of the pride of blend.ph. Unlike investors, business loans do not require the borrower to divide the profit the business makes and only ask for the monthly payment of the principal amount owed plus the interest.
No collateral is also required if the borrower is eligible for borrowing the amount. They could proceed to the process, which is highly recommended for small businesses which may not have assets to act as the collateral.
Blend.ph offers business loans with lesser risk and a lower interest rate, and if you are looking for a financial consultation from experts, GritPH is a website that you should try with the best financial advice.
6. Cover Emergency Expenses
The immediate need for funds in uncertain times is rattling, especially for a small business where there are emergencies. Having sudden troubles could also be said in large companies where natural disasters, endemic, or pandemic hinders business growth.
Emergency expenses are not only for newsworthy emergencies but for minor inconveniences in businesses where the money to pay for that is already allocated for more important things.
Seasonal businesses and small businesses are prone to emergencies, and to keep business afloat, the quick disbursal of loans is necessary.
The business loan requires documentation already available for business owners, which allows small businesses to continue operation while waiting for the funds as the loan disbursal would not take too much time before the capital to run the business depletes.
7. Helps Sustaining your Business
Businesses fluctuate, and it is inevitable. That is why people call business owners ‘risk takers.’ The benefit of small business loans is ensuring that business finance is paid and secured on days when business is slow.
The costs for the payroll, the inventory, and the expenses in marketing are some of the needed finances in business that could be covered by getting business loans.
In cases where there is already a set emergency fund, deducting from the funds, the sudden need for daily operation costs and short-term expenses is not recommended—increasing your working capital for faster business progress or stabling the business growth.
Remember that owing money from lenders is a responsibility; owing too much of what you need could put you in more considerable debt. Responsible loaning is a character to build in the business world to assure not only the growth of the business but your personal growth.
What do you need to get a business loan?
Blend.ph is a platform where business owners could loan additional capital for low interest. Borrowers could owe from 100,000 to 2,000,000 Philippine pesos with different partner lenders.
If you are a Filipino citizen aged 20 to 60 with a business running for at least one year, you could easily apply for a loan with low interest.
Document requirements are also needed, which include two government-issued IDs, business permits, the latest income tax return(ITR), financial statements, bank statements from six months ago, and post-dated checks with the account name.
To start your application, create an account with us and choose a lender with your choice of amount and with low-interest rates where you could choose freely from different partner lenders and Blend.ph.
Check Grit.PH for Financial Information
If you need financial advice for borrowing money, GritPH is your guide to wealth building. Acknowledged by the most prominent publications on the internet, the website is available on the internet across the world.
Learn about managing your money and responsible loaning without the hassle and stress. Located in Quezon City, GritPH is available through their Facebook and Twitter accounts, and please watch their free course on YouTube to learn about return on investments and more.