Running a business isn’t quite easy, especially at the initial stage. To run a profitable business, you need to invest money in the business to get returns. To grow your business, you need to employ staff, get the necessary equipment, and invest in marketing/advertising. Most of the things required in starting and running a business revolves around money.
At a certain level of your business, you may need to get a loan to invest in your business to get better returns. Although taking on debt may seem terrifying for small business owners, it may be exactly what you need to grow your business and get a good profit. Here are a few reasons why you need a business loan in Nigeria.
Expansion & Marketing
One reason you may need a business loan is for expansion and marketing purposes. If you already run a semi-successful business in Nigeria, you may need a small business loan to expand your business. When your business is bringing good interests, you need to put more efforts to avoid shrinkage and make more profits.
The expansion entails getting more staff, a physical store, product review, and of course, marketing. Marketing is essential to every business, whether on a small scale or large scale. Proper marketing would help you in expanding your business and getting more customers. However, you have to be careful in marketing to avoid an unproductive marketing result. Unless you have enough funds in your business to continue smooth operation and still do proper marketing and expansion, you may need a business loan. The business loan will enable build your business without affecting your day-to-day operation.
Stock and Inventory
In running a business in Nigeria, you’ll likely need to purchase new stocks and inventories regularly. Oftentimes the last stock of your products may not be completely sold out before you’ll need to order new stocks or pay for the old ones. Although you may need to properly balance your demand with your supply, you may need a loan when starting, to offset the cost of your inventories before they get sold out. Taking a loan to purchase or balance your inventory cost will help you always have the products your customers need in your industry and still a good operational flow.
Operational cost can be a challenge especially for small businesses or start-ups in Nigeria. You need to deal with challenging customers who buy on credit, payment of staff salaries (whether the month was profitable or not), utility bills, rent or mortgage, and other day-to-day expenses. When your business is just starting, you might be making little to no profit which may not be enough to scale up your business. A business loan can be used for your business operational cost until you start making enough profit. While your business profit is low, a business loan can help you have a smooth operation till you make up for your losses.
For most businesses in Nigeria, there are necessary pieces of equipment that are required in doing the job. It could be a treadmill for a gym business, a refrigerator for your restaurant, or a generator for your office. Either way, you need certain equipment for your business to thrive. More often than none, the equipment needed is expensive. Purchasing the required equipment outrightly from your revenue can strain your business. Maintaining and repairing these types of equipment can also break your budget. Getting a business loan can help you purchase and manage your equipment without crashing your business.
In getting a business loan, you need to ensure that the interest rate is fair, and you have a convenient repayment plan to fit the income rate of your business. Sycamore offers personal and business loans with competitive interest rates and a good repayment plan for small businesses in Nigeria. It is easy and convenient to obtain a business loan from sycamore. Visit www.sycamore.ng to get started today.