Getting your business up-and-running is an incredible achievement and one you’ve probably spent years working towards. As an entrepreneur, this part of the process may have come naturally to you. Many startup owners struggle with the next step: promotion. Unless you studied marketing, you don’t know where to start.
The good news is that in 2022, marketing is easier than ever. Social media marketing makes it possible to reach millions of potential customers around the world with just a few clicks. You create a post with an image and write some copy, then choose your audience and set a budget. It really is that simple.
While social media marketing is effective and inexpensive, the costs will still add up. Furthermore, this won’t be the only type of marketing you engage in. You may need to pursue other means of promotion as well, and could benefit from hiring an individual or firm to market for you.
But what if you no longer have capital to work with? You can consider taking out a business loan for marketing purposes. There are different types of business loans available. Here are the loans that you can use to promote your business.
The most traditional type of loan you could take you to promote your small business is a term loan. This is a fixed sum of money loaned out at a fixed interest rate. You select a timeframe or term over which you will repay it.
If you took out a loan to start your business, this is likely the type of loan you chose. It is perfect when you know how much capital you need available. You can get this type of loan from banks or private lenders. As with any other business loan, you will pay high interest rates if you do not have an asset to use as a guarantee. Nonetheless, they are still cheaper than other forms of financing.
Business Line of Credit
A business line of credit is a type of loan that essentially works like a credit card. Instead of taking a lump sum of money which you then start paying off, the money is simply made available to you. You can choose to use some or all of the available funds, but only pay for what you have used.
This is perfect for businesses who are not yet certain of how much they will need to spend on marketing and promotion. You can start small with social media adverts, and scale up if necessary.
Interest rates on business lines of credit tend to be high, but you only pay interest on the amount you have used.
Working Capital Loan
A working capital loan is similar to a term loan, except the term is usually much shorter. These loans are taken out by businesses to cover the funds they need in order to function on a day-to-day basis. Since promotion is one of the most important parts of running a business, a working capital loan can be used to pay for whatever marketing approaches you use.
Taking out a business loan to promote your business can be a great investment. You will have to pay back the sum used, with interest, but good promotion will ultimately pay for itself (and much more).