A business has to undergo a lot throughout its tenure. From paying off employee salaries to a large number of bills, they do include a lot of expenditure and the owners may find it difficult to do so all on their own. Here are a few examples of when and why applying for a business loan is a great option for you.
Situation 1- Payroll Expenses:
It is not new news that these days, employees come with an expectation of a salary that can fulfil their daily needs. This means, paying off their rent, EMIs if any, grocery bills, electricity bills, gas bills and transport to name just a few.
In order for one to run a business successfully, you must have enough number of employees to fill in every position that your firm may need. Let’s take a restaurant business for example. Being the owner of one, you will have to take into consideration these various job profiles that will require you to hire employees for the same, for your business to run efficiently.
- Cashier: Depending on your opening hours, you will have to hire at least 2 cashiers who can take care of the billing.
- Servers: A food and beverage business definitely calls for a good number of waiters to be hired. You must keep in mind the various job roles a server has to play- from taking orders to generating KOTs and serving the dish to your guests. Some basic restaurants are not very choosy about whom to hire. However, if your target market is the upper class and your menu is expensive, then you should ensure to hire professionally trained butlers- who without a doubt, will charge much more than an individual who is not specialized in the field.
- Bartender: If your restaurant serves alcohol, there is no doubt that you will need a few bartenders for the same.
- Accountant: A very necessary job role that very few can pull off. A C.A. or an accountant needs to be hired to manage your revenues, incomes, profits and losses just to name a few basic factors that accounting entails. Apart from that filing taxes, which ones can be waived, etc. are also necessary, which only an accountant can help you get through with.
- Chefs: Ever heard of “Kitchen Nightmares”? Yes. You do not want your restaurant to be part of that, do you? In order to be able to run for a long period of time, you must factor in ambience, vibe, service and most importantly food! The presentation, quality and taste of your food are all very important in order for your food outlet to be success. To do that, hiring the right people who specialize in the kitchen department is very important; and they obviously will demand a fair amount of money when it comes to their salary.
- Maintenance Staff: Maintaining good hygiene and cleanliness are undoubtedly very essential. Keeping crockery and cutlery clean and ensuring that the kitchen and dining area are neat and tidy will certainly need a good number of staff which will require you to invest a good amount in.
This was an example of a basic restaurant business, which needs quite a few employees to run smoothly. You should keep in mind that not every day is a Sunday and that some days may be profitable while some may just not be the best, financially. However, in order to sustain you will need to keep your employees and to do that you will have to pay them. These are the time when a business loan can come in handy and be quite beneficial to you and your business.
Situation 2- Equipment Replacement or Investment:
Technology is undoubtedly growing in every aspect and field. That being said, we always want to invest in the best of the best equipment for our business, because they promise a longer duration of sustenance and in general, make life easier while running a business. Let’s take the above example of the restaurant business into consideration once again. Most restaurants these days prefer investing in a deep fryer instead of going the traditional way of heating oil in a huge cooking pot that not only takes a long time to heat but also wastes a lot of time while cleaning it, apart from the fact that it needs to be changed every few months since it gets worn out sooner.
However, even though more durable and long lasting, such equipment can get spoilt once in a while, or you may just want to invest in one that you don’t own yet. These are definitely not cheap which is why a loan can help you invest in a piece of equipment that seems like a good choice for your business.
Situation 3- Renovation of Your Office:
With time, trends, interests and preferences change. Maybe a few years back a certain theme- for example dim lights and recorded music was preferred- and now something that makes the ambience lively and vibrant with a stage for musicians to perform live is preferred for a restaurant. Also, one may want to change the look of their workplace in order to break the monotony. Whatever be the reason, renovation is key for many businesses to do better than they already are. In such circumstances, availing a business loan from a trusted lender can be a good option.
If you have bad credit, it can be very difficult for you to receive a loan from a bank or any other traditional lender. A business loan from a lender like BusinessCapitalUSA can help you solve that problem, since we know that there can be a number of reasons as to why one may have a faulty credit rating especially while trying to run a business. For instance, if you’re still paying back a loan that you may have taken a few months ago, your credit rating may not be the best but it still doesn’t imply that you’re incapable of repaying your lender and may be the case of your repayment term not being over itself.
From taking care of employee salaries to investing in stationery, everything requires funding which may not be very easy to get. In such circumstances, a business loan can be very beneficial and these were just a few of the many examples of such situations.