How borrowing could help your business grow
You can use business finance for almost any reason, but some of the most common are to:
Hire more staff
Buy new equipment
Move to larger or new premises
Buy more stock
Pay for other business services
If your business doesn't have the necessary cash reserves, borrowing could be an affordable option.
When to borrow for your business
Deciding when is the right time to borrow funds is dependent on your business needs and financial security.
Think about how a loan or finance agreement could help you do things you would otherwise be unable to and the business impact it might have.
Borrowing to accelerate growth
Many companies borrow to take on more staff or to expand their operation into new business areas.
Before you decide, work out the financial benefit of hiring new staff and whether this will offset the cost of both your borrowing and paying their salaries.
Borrowing for an immediate return
If you have a specific business opportunity with the potential for an immediate profit, borrowing money to secure it could be worthwhile.
Work out how much you need to borrow and the cost, then weigh this against the potential profit your business could make.
Get the right finance for your business
If you think that borrowing is right for business, compare your options to find the cheapest deal.
It is also worth checking which type of business finance will best suit your needs, for example asset finance if you are buying new machinery or business equipment.
