Six reasons to consider taking out a business loan

Many small and medium businesses, while successful and profitable, need a cash injection to take a step to the next level.

While there is an understandable hesitancy to go into debt, the truth of the matter is your business may reach a plateau where any more growth is predicated on investing money you may not have at the moment.

If your business is ready to take a bold leap forward, here are the six reasons an EstateGuru business loan may be the perfect solution.

  1. Expanding your physical location

Whether it’s a restaurant that simply can’t seat everyone interested in dining there, a specialty goods shop that has run out of display space or an office that has become crowded and simply can’t handle any more staff joining, limitations in physical space can hamper a business’ revenue growth. While it is easy to suggest simply moving elsewhere, location is often vital to a business’ success, plus you may be the owner of the building rather than a renter, which makes a move completely out of the question. A business loan is a perfect solution to expand or simply redesign your location to make it more efficient and help you grow revenue.

  1. You need business-critical equipment

This is generally a no-brainer. You may need new IT equipment, heavy machinery or catering tools, whether it’s to replace old equipment or buy new things that will help you raise your profitability. The problem is that this usually means a substantial cash layout in advance, especially if your business is particularly specialised and new businesses in particular usually don’t have vast cash reserves to invest.

  1. You want to purchase more inventory

If you’re in the business of selling things, you need to invest in inventory. This is also one of the biggest expenses for most businesses, due to the somewhat speculative nature. Just like with equipment purchases, you need to meet demand (or even drive it) with plenty of quality options for your customers, especially if you’re competing with large chain stores. Consumers like variety and a shop or business that is clearly and obviously running short on inventory creates a negative impression. Seasonal businesses in particular often have trouble with this, as they need to invest upfront after several months of very slow business. A business loan is a perfect solution for this.

  1. You need to hire more staff

Any business owner understands this dilemma. You know that another two or three people in critical positions is exactly what your business needs, but also that you’ll only see the revenue results of hiring them six months down the line. You’ll still need to pay their salaries for those initial six months, however, so it becomes impossible to hire the right talent when you need them most. This is an incredibly frustrating position to find yourself in, and a short-term business loan is the perfect solution to get you over the hump and assist you in hiring the right people to let your business grow. This situation is especially prevalent in the start-up industry. There comes a time when doing sales, marketing, customer support and business development yourself is simply not viable anymore. 

  1. An opportunity arises that you simply can’t miss

A potential client approaches you offering a year-long contract that would see you make €200 000 in profit. The problem is, you’ll need to buy €80 000 of equipment in order to service this contract. That’s still a clear €120 000 profit in just a year, and the equipment will probably allow you to gain more new clients. The problem is, you simply don’t have the €80 000 at the moment. Even if you take a one-year business loan at 12% interest for the equipment, you’re still going to make a substantial profit.

  1. Refinance or restructure an existing loan or debt

Many businesses find themselves in a variety of forms of debt. They may have taken on credit card debt to cover a short-term emergency or approached a non-traditional lender during a period of reduced cash flow and are now struggling with high interest rates that keep piling up. It is often smarter to refinance existing debt under one consolidated loan that offers a lower interest rate, freeing up cash on a monthly basis and saving substantial amounts in the long run. Loans that offer a bullet repayment, as EstateGuru does, can also help businesses in the short-term, especially if they are certain that a period without monthly or quarterly repayments will be a positive for their business in the long run. 

The problem and the solution

The problem with many of the above scenarios for most small business owners is that banks are often entirely unwilling to assist them. They may not have a long enough track record or the loan amount is simply too small to interest the major credit providers in the market. On top of this, the application process is usually slow, tedious and hugely complicated, leaving many small business owners frustrated at missed opportunities.

EstateGuru’s business loans start from just 8% p.a. interest with flexible repayment schedules. You can pay back the interest and principal at the end of the loan period, giving you the time and breathing space to reap the rewards from your investment. The fact that the loans can be taken out by offering real estate as collateral also makes it much easier than with other providers. As you can see from this case study, the collateral doesn’t even need to be directly connected to the business, meaning you could use your private home as surety against a loan to boost your business.

EstateGuru loans are also fast. With the right collateral, you could move from application to money in your account in just three days. 

In addition, you can choose how you repay the loan, in regular instalments over the loan term, by paying only the interest and then the principal in one chunk at the end of the loan period (bullet) or paying interest and principal in one go at the end of the term (full bullet).

Simply fill out an application form and one of our loan specialists will contact you to assist you with your application.