Bank-Loan-for-your-Business

Many businesses face numerous challenges such as the lack of resources, insufficient marketing efforts, unable to find manpower, rising fixed costs and delay in customer payments. Have you as a business owner faced such problems as well? If you have, read on.

I’ve met numerous business owners that often have the mentality that “Cash is King”. Thus, they have never once resorted to taking up loans to fund their businesses as living within one’s means is what they believe in. “I shall not take on this project if I cannot afford it” or “It’s very expensive to change this system so I think it’s better not to” are very often the phrases I’ve heard.

But let’s take a step back and think it through. Does having more capital give you a higher bargaining power towards your suppliers? Does having more capital allow you to pay for a more talented pool of employees?  Does having more capital allow you to build your brand easier through marketing campaigns? And lastly, does having more capital speed up the progress of your business and make everything much easier?

The answer is yes it does.

Despite many misconceptions that taking up a bank loan for your business is a detrimental thing, here’s why we believe that taking up a bank loan isn’t that bad a thing after all:

  1. Securing That New Project
    A friend of yours just referred you a project that could potentially add great value to your business portfolio but it requires you to pump in a certain amount of funds upfront to purchase the supplies should you manage to obtain the project. You’re afraid to go for it because you have insufficient capital. Now, here comes the solution. If taking up a business bank loan where your project returns are able to cover the interest costs and provide you with an affordable monthly instalments, the thought of foregoing that project would not exist.
  1. Better Manage Your Expansion
    Some businesses are in the stage where they have too much clients that want to engage them but have insufficient manpower to help out. Thus, they end up having to reject them. With more capital on hand, you would be able to take up a bigger office space and employ more people to share the stress and workload with you. You will then no longer have to reject clients any more.
  1. Ease Your Cash Flow
    Many businesses run on payment via credit terms from 30 to 120 days depending on their relationship. In the event that there is a delay in payment from your clients, you still have to pay your suppliers and bear the monthly fixed costs in terms of rental, utilities and salaries which are really high stress levels. With a business bank loan in place that helps to pay off your suppliers first or allow you to take cash out from your customer invoices, wouldn’t that make breathing much easier?

For small and medium enterprises, capital is a vital component to keep the business going. Many people often have misconceptions that debt is detrimental and unnecessary. But we believe that debt will make a good difference only if it is of the right amount (not too much), if you know how to utilize it properly and to not be overly dependent on. With a well thought out plan to tap on the borrowed capital, then can you maximize the returns of what you are about to invest in. Secure your new projects, purchase assets or cover your temporary fund deficiencies wisely with the right types of business bank loans.

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Many first-time borrowers and start-up entrepreneurs are not familiar with the whole process or lack the information about bank loans. Having said that, they are strongly advised to seek for expert advice that can better understand their situation or help them get better loan terms. It is very crucial to be well-informed as to how bank loan procedures work because every bank has a different set of criteria, policies and procedures.

For an easy, accessible and convenient process, let Capitalize understand what your business really needs based on your industry nature, your business plans and goals and obtain you the capital you would need to bring your business to greater heights.

Capitalize is a corporate loans specialist firm that helps Small Medium Enterprises (SMEs) and individuals to seek, source and obtain capital from across our established network of up to 30 banks, financial institutions, funding houses and alternative platforms. We are always committed to provide our clients with the most suitable loans according to their needs, from the lowest interest rates possible and at the quantum they require.