Regardless of whether you’re a new-start, growing or established business, capital is one of your most valuable assets and there are smart ways to use business loans.

With money constantly moving in and out of your business, it’s feasible that you might need to consider sourcing external funds to help you manage cash flow or achieve business goals.

Applying for a business loan can come with a negative stigma; often perceived as a sign of financial hardship or a last resort – but this certainly isn’t always the case! On the contrary, loan facilities can be used as part of a strategic move for a business; as more of a proactive, rather than reactive, solution.

Mark Johnson of Johnson Reed explains how unsecured loan products are designed to be flexible and can be tailored to meet a number of different business requirements.

Here are six smart ways to put them to use:

  1. VAT Bill – Regardless of your payment schedule, VAT bills seem to crop up at the most inconvenient of times! Delving into capital funds to pay your bill can be a risky move; prohibiting cash flow and causing unnecessary strain on the business. Johnson Reed can provide a speedy solution to help you meet your deadline with a loan from as little as £2000 and over just three months.
  1. Expansion Plans – Whether you’re considering adding to your existing premises or branching out to new pastures, expanding your business requires a carefully-considered strategy and sufficient funds to execute it. Whilst leasing might be a better fit for any new equipment purchases, a loan can cover a multitude of other project costs. You can enjoy peace-of-mind through this exciting period, factoring in the project costs through smaller, more-manageable repayments on a fixed schedule.
  1. Corporation Tax – Yet another expense that can throw a spanner in the works! As an accumulation of your business’ ‘taxable profits’, your corporation tax can be an incredibly disruptive outlay. Johnson Reed can help you fund your corporation tax and spread the cost over a 12 month period for a more cash flow-friendly approach.
  1. Expanding the Workforce – With new employees come new expenses – training, additional resources, wages… the list continues. Make the on-boarding process a smooth one with an unsecured loan to cover the necessary costs and you’ll be reaping the benefits from your new team member/s in no time!
  1. Product Development – As the saying goes; nothing ventured, nothing gained. Introducing a new product is an exciting prospect, but perfecting a product takes a great deal of time, patience – and money! Our unsecured loan facilities can help you stay on track, providing a cash barrier to allow you to carry out the necessary research and development work without affecting your capital reserves. Your loan is repaid in regular instalments, which can be offset against the revenue your fantastic new product is generating!
  1. Cash Flow – Even the most well-managed of accounts can go through periods where cash is a little tight. When you need extra funds on your side, turn to Johnson Reed. Our loan facilities can pick up the shortfall wherever necessary. With terms from three months to three years and amounts upwards of £2000, there’s usually a solution to fit!

Aside from these six uses, loans can be tailored to meet almost any business requirement.

Expert Opinion provided by Johnson Reed 

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