Five Ways To Use A Loan From A FinTech Company To Make Your Business Successful

Rohit Arora, CEO and Co-Founder, Biz2CreditThe growth of the FinTech (short for financial technology) is apparent to all worldwide, especially for those with small businesses. For entrepreneurs who are turning their passion into a business, the road to success is never-ending. Problems pop up left and right but for a company starting out, adequate funding is always an issue. Gone are the days of having to go to your bank to apply for a loan, now you can use a FinTech company, do it all online and receive your funding in less than 24 hours. FinTech companies have become the lenders of choice because they can be approached for micro, small and medium enterprise funding (MSME loan) without taking out any collateral. With the enormous flexibility provided, it's important to know how to use the borrowed capital and be confident that you can pay the loan back.

With that in mind, if you are not acquainted with what you can do with a small business loan from a FinTech company, keep on reading to learn more.

Purchase More Resources
There comes a point when you need new machinery, soft-ware and other equipment to manufacture goods or optimise your services. Don't let a lack of available funds stop you from investing in new technology to improve productivity. Consider using a FinTech company as your way to gain funding.

Securing a loan may be easy, but make sure that you spend the money on things that you genuinely need. Procuring funds from external sources for things that are desirable but not indispensable can impact your bot-tom line, especially in the early stages of your business.

Buy More Inventory
Inventory is a huge expense for any business involved in the direct production or supply of tangible goods. You need to replenish your stocks with high-quality options to keep up with demand. This can be challenging - especially when you must buy large quantities of inventory before getting a return on the investment.

To evaluate your decision of taking an MSME loan for this purpose, it is good to create a sales projection based on the past years' sales figures in the same months.
Compute the cost of the loan and weigh it against the amount procured from the projected sales to see if it will be a wise financial choice. As an extra precaution, be conservative in your calculations because sales can vary from year to year.

Hire More People
As an enterprising individual who in-vested in a start-up, your bandwidth may be maxed out. With the increase in work, managing marketing, customer service, order management and bookkeeping (while also tracking revenue activities) is a difficult task for many. If you're able to, hire more skilled people to support the team. You do not want to wait until everyone is worn out, as it will impact your business in the long run.

Gone are the days of having to go to your bank to apply for a loan, now you can use a FinTech company, do it all online and receive your funding in less than 24 hours

Do your calculations and ensure there will be a link between the hiring decisions and the growth in revenue. When having an extra set of hands at work helps you to focus on the big picture, it will offset the cost of procuring a loan and will let you make bigger profits.

More Space
Start-ups and SMEs with limited funding usually start with small office spaces or even a spare room at home. As work begins to increase and new employees get hired, the need for new office space arises. For those who operate a customer-facing business, like a restaurant, or retail store, it is important to have a space that can accommodate their customers comfortably.

It is wonderful to realize that there is a growing demand for your products and services, and the business is ready for expansion. However, it may not always mean that you have adequate funds to make it happen. While your revenue earnings are often utilised in regular operations, applying for an SME loan is a good option.

Build Credit for the Future
Based on your long-term business projections, you may be planning to apply for large-scale financing in the future. The case for such a loan can be built by starting with a small, short-term SME loan. Such a step will help you to solidify your business credit rating.

Businesses that do not have a good credit history have trouble in applying for loans. If you take a smaller loan and make regular, timely payments, it will help you to become eligible for the funding that you will need in the next few years.

Remember that if you want to take out a loan, that you need to pay it back. One delayed payment can spoil your business credit history and harm your chance of qualifying in the future.

Final Thoughts
Biz2Credit has matched thousands of small business owners with more than $2 billion in loans and other funding products over the last decade. Biz-2Credit has experience working with merchants that have great credit, as well as those who have poor cred-it or little or no credit history at all. Our small business finance experts can guide you and help you reach your goals.

Get funded today by completing a single free business application, received the best financing options available for your business and get funded in less than 24 hours!