Many companies choose to invest their startup loan in marketing their business’s concerns. This is particularly important at the early stages of the product cycle as small businesses try to gain a foothold in a marke; they need to be able to form a solid customer base from which to build on. As you’ll be aware, it’s easier to retain customers than attract new ones. However, it’s still important to introduce a strategy to maintaining and exploiting your customer base.
New business loans are also used to cover the initial costs associated with setting up a new company. This can include everything from buying stock to paying for insurance. Crucially, one of the largest barriers to entry for new businesses entering a market is these one off costs but a loan can help cover this.
Dealing with lead times
Businesses also suffer from lead times between the outlay of undertaking a project and the resultant return. SMEs are particularly vulnerable to this. Startup loans can give businesses the capital to absorb the initial hit whilst keeping up with other operating costs.
Business startup loans can also help with accruing assets. These can range from production equipment and tools to premises and technology. Established companies have the purchasing power to easily accommodate these costs but loans help small businesses level the playing field by allowing them similar access to the latest technology. A loan can also help you with leasing your equipment. This has the benefit of lower upfront costs and technical support in case things go wrong. The latter is particularly advantageous for new businesses as they may struggle to pay unexpected costs.
Government backed start up loans can also help with expansion. Expansion doesn’t just have to be opening up new branches; it can be as simple as bringing in new products, looking at new markets or taking on more staff. Often the costs associated with expansion come as a stumbling block for smaller businesses and loans provide a means of hurdling this.
But it’s not just capital that Smarta’s loans can help you with. Each successful applicant is assigned a personal mentor that will help guide your business onto the path to success. Each of our mentors is a highly experienced entrepreneur that will be able to provide you with tailored advice and direction. The up to £25,000 certainly won’t hurt either.