Loans have been used for thousands of years as a means of keeping businesses afloat. Farmers first introduced them as a method of borrowing seeds to later make payment when produce had grown.

Today, the practice of loans is still essential to the growth and development of any profitable business. It could even be argued that a business cannot turn a profit without an initial injection of working capital to get trade moving in the first place.

Unsecured business loans are a fundamental way to ease cash flow in your business and make key payments that will generate higher profits in the long run. Unsecured business loans require a personal guarantee, so someone must repay the loan if the business can’t.

They can also be hugely advantageous to businesses that are in high demand but don’t have the immediate resources to take on more work. There are generally 10 primary reasons that company directors seek commercial finance to keep their business moving forward. Let’s take a look at them.

Stock

One of the most common ways to use commercial finance is to buy stock. It makes more sense for businesses to avoid reaching into their own pockets to buy stock, as no money exits their account until they turn a profit.

Managing supply and demand is easier when you have almost instant funding at your disposal.

VAT & Tax Bills

Looming deadlines for VAT and Tax bills is one of the biggest stresses to any company director, particularly when you don’t have the funds to pay them.

An unsecured VAT loan gives you a buffer to get bills paid on time and in full so your business can continue without interruption.

Refurbishment Works

Commercial finance can be incredibly helpful when refurbishing business environments such as restaurants and shops.

It means you can get started on the project without hesitation, reducing the time you’re closed for renovation and not trading.

If you’re looking to refurbish your premises, Crispcap offers quick funding so you can start development when it suits you.

Recruitment Costs

Sometimes a business’s biggest issue is staff shortage, and with that comes hefty recruitment costs.

An unsecured business loan allows you to get the hiring process started immediately, so it isn’t long before you have skilled employees ready for work. This can be critical when you have a new contract that you need staff for.

Equipment Purchases

Whatever the industry, trade cannot be carried out without the correct equipment in place.

That’s why it’s useful to have accessible funds for equipment repairs and new purchases, so delays in trading are hugely minimised.

What’s more, it’s great for small businesses at the start of their journey because they might not have the funds to buy essential equipment right away.

Fund New and Existing Projects/Contracts

New projects and contacts are encouraging signs that your business is accelerating. But it can be frustrating when you have to refuse jobs because your still awaiting payment from a previous invoice. This is particularly common in the construction sector.

By injecting some working capital into your business, you can gather the resources you need such as staff, equipment, and stock to accommodate new jobs that come your way.

Wages

Perhaps the most important responsibility of any business is paying employees on time. If this isn’t prioritised, companies can face staff shortages and a negative reputation.

Unsecured business loans are a helpful way to keep up with staff payments on time. It maintains workers’ trust in you as a legitimate employer, and likely means they’ll return for work when you need them most.

Marketing

It can be difficult to build a business’s online presence from scratch, particularly when you want to see new leads coming through soon.

But you can use commercial finance to invest in proven marketing tools like adverts on Google and social media to boost traffic to your website. You can also outsource writers for blogs and case studies to show your expertise in your industry.

Business Acquisitions

An unsecured business loan can be used to purchase another business. If the price is especially high, it makes sense to use commercial finance to temporarily cover the cost until you’re in a place to pay it back.

The quick turnaround of a loan can be a huge advantage if you’re purchasing a previous competitor or need to strike a deal before it’s off the table.

Consolidate Debt

Managing multiple loans can be a frustrating and, ultimately, expensive process. Costs can mount up when you’re keeping up with short-term and high interest debts.

An unsecured business loan can be helpful in consolidating numerous debts into one long-term loan with a lower interest. It means you’re less likely to avoid monthly repayments and paying less for business finance in the long run.

Where Can I Get an Unsecured Business Loan?

At Crispcap, we’re specialists in arranging unsecured business loans so companies can thrive.

We support you with commercial finance, so your business has the funding to grow further than before. Crispcap is passionate about seeing people achieve their professional goals, and we’re here to help you with the next step.

You can fill in your details below and we’ll be in touch within 24 hours. A credit check is not required.