If you’re new to the world of business, there are a few big assumptions you might hold about running a company. One of these may be that business loans are a tool for getting out of financial difficulties, but this is far from the truth. Read on to learn about using business loans as a tool for long-term growth and building your company in a sustainable manner.
What are business loans?
Business loans are financial packages that a company takes on with the expectation of paying back further down the line. Companies use business loans as a means of increasing the funding available for certain projects or tasks within a business. The majority of business loans have firmly defined terms, such as interest rates and repayment terms.
How do business loans help growth?
Business loans help a company’s growth in a range of different ways. The first of these is through increasing the resources of a company and enabling more action in the business. For example, a business loan of £20,000 is another £20,000 for staffing, resources and infrastructure. Companies use business loans as a means of increasing their productive potential. Your company makes more profit over an extended period of time, and it’s a portion of these profits that ultimately pays off the balance of the loan.
Why is this better than building resources naturally?
This is a better means of building up the resources a company has, firstly because a lot of businesses have very little initial capital. Some people start businesses with an idea and the money they have in their bank account, which is often not enough to achieve meaningful growth in the short term. With the funding from a business loan, companies have the opportunity to grow more quickly and take on larger projects than they could with exclusively organic capital.
Business loans – where to find out more
Tower offers a full range of finance solutions – products and services aimed at business development and growth. Regardless of how much capital you need or how big you are as a company we can normally help. Find out more about alternative finance options here.
If you’re looking for business loans that give your company the best possible chance of growing quickly, get in touch with the Tower Leasing team today. Our friendly experts are on hand to help with your business strategy, and we can provide the financial support you need.