Merel Nijland
Introduction
As an entrepreneur, you are of course committed to making your company a success. For example, by stimulating growth or responding effectively to changes. Do you want to know how to get the most out of your business with financing? In this blog, we describe the 5 most common reasons why entrepreneurs finance their business.
A practical example: Purchasing stocks
Hospitality and retail companies can have a seasonal character. This means that they earn most of their turnover during a certain part of the year, such as beach club owners in the summer.
In these cases, it can be interesting to take out a loan to purchase stocks before the busy period begins. After the season, you can then repay the loan using the proceeds from the seasonal income.
5 reasons to fund your business
In the example above, we read why seasonal entrepreneurs can benefit from taking out a loan. But there are more! We have listed the 5 most important reasons for business financing for you.
- Financing inventory
For example, if you work in retail, you know that purchasing inventory can make a dent in your working capital. To solve this, you can also borrow this amount, which is particularly useful for periodic or seasonal purchases, such as a winter collection of clothing.
- Bridging
With a bridging loan you bridge a short period of time where you expect larger expenses. This is possible, for example, because a large customer suddenly drops out, you have to make seasonal purchases or because you have had a bad year. In that case, in order not to run out of money, take out financing.
- Pre-financing invoices
Let's say you've already sent your client an invoice but it hasn't been paid yet. You do need that money! You can then have a lender pay this invoice. This is also known as factoring. The lender takes care of further processing with your debtor.
- Tax
During the coronavirus crisis, the government made a number of financial arrangements available for entrepreneurs. However, some of them also have to be paid back, which you may not have money for (yet) because you did badly for the same reason last year. Think about paying back the NOW because your income has changed.
- Purchase of new equipment
Do you need new equipment? That can sometimes be tough. Sometimes it is necessary to be able to continue your business, as in his case, and sometimes because you simply want to grow. Both equally good reasons to take out financing for it!
How does Swishfund help you fund your business?
The financing landscape is developing at a rapid pace. We see that more and more entrepreneurs are not afraid to make extra financial space for themselves by borrowing an amount. With financing, you can respond smartly to your situation, such as by achieving a purchasing advantage by purchasing in bulk or pre-financing projects. In addition to the 5 reasons described, the possibilities are endless!
Swishfund is a party that helps entrepreneurs quickly business financing offers. A fixed term, a fixed repayment. We make it as easy as possible for you.
Are you also interested in taking out a business loan? Discover immediately what your financial options are and make a request!
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