Every business needs to innovate, and expand in order to stay ahead of the competition, and grow year over year. The secret to accelerated growth means knowing when and where to apply cash flow, and sometimes that kind of capital is in short supply, at least for the short term.
Accessing necessary funding to fuel these growth initiatives can be a significant challenge, particularly when dealing with traditional lending sources, such as banks. This is where term loans come in – a flexible and innovative financing solution that can help your company reach the next stage, all without missing a beat in your day-to-day operations.
WHAT ARE TERM LOANS?
The simplest way to grasp the concept of term loans is to understand that they are a type of financing which provides a lump sum of cash to businesses in exchange for a percentage of their future sales. Term loans are designed specifically for businesses that require convenient funding capable of being applied anywhere it might be needed.
HOW CAN TERM LOANS HELP?
With a term loan, your company can easily and quickly access funding required for research and development, the hiring of new talent, or investment in new opportunities. This is how true innovation is driven, allowing companies to stay ahead of the competition, or make up for lost time. Term loans can also provide the necessary funds to expand your business, whether you’re thinking about opening new locations, hiring more team members, or investing in new equipment. Whatever helps you get to that next phase of growth, term loans can act as the accelerant.
You can also improve your company’s cash flow with a term loan by receiving a lump sum of cash, upfront. This can help you pay off debts, cover unexpected expenses, or invest in new initiatives as required, allowing you to mitigate any potential complications that might stall the growth of your company. Couple that with flexible repayment terms that allow you to repay in a way that works best for your business, and the advantages become even more apparent.
Also, unlike traditional loans, a term loan does not require any collateral, which is great news for companies who want to minimize financing risks. Application and approval processes tend to be significantly faster than traditional loan sources would allow, meaning you can access your funds immediately, sometimes on the same day.
TERM LOAN SCENARIOS
Ever thought about how a term loan can actually impact your business? Consider the following scenarios, so you can glean a proper understanding of how to use them effectively.
- A small bakery obtains a term loan to invest in new equipment for the purpose of expanding their product line, allowing them to increase their customer base and revenue.
- A tech startup uses a term loan to hire new talent and invest in research and development, leading to the creation of an innovative new product.
- A retail store uses a term loan to expand their online presence by investing in digital marketing, resulting in increased sales and customer engagement.
CONCLUSION
Term loans are an ideal solution for businesses who have made innovation and expansion their top priorities, especially if traditional lending sources are either unpalatable, or not an option. Your company can harness the power of term loans to fill in all the gaps required to move to the next level of company growth, thereby setting you up for accelerated future success.
At Essential Capital, we understand the inherent power of term loans, and they are one of our most popular offerings for businesses who need to climb that next rung of the ladder. Contact us today, and enjoy a quick, hassle-free approval process that will give you the cash you need to do the same!