Marketing expenditure accounts for roughly 11% of the company's total budgetAccording to the Deloitte Survey. It makes sense, given it Marketing There is business work involved in creating, keeping and satisfying customer business.
Without it Solid marketingYour business can neither grow nor achieve success. There are lots of channels from social media campaigns and a website blog with traditional billboard ads and TV commercials Drive lead And change new customers.
The reality is that they spend money on all those things. To ensure that your business has enough marketing capital and wealth, consider loaning to increase your marketing channel.
Here are five great financing options to cover your marketing expenses:
3 loan options for young companies to fund marketing campaigns
The fact is that if you are just starting, then there is no high revenue and / or lack of great business credit, it would be very difficult to get a favorable term loan from traditional bank or SBA. Do not panic, however. You have other options for financing your marketing activities.
Here are three to consider:
1- Business credit card
As a new company, there are several reasons to consider business credit cards to pay for marketing expenses, including the following:
- Approval will not be difficult or time consuming. Even if you have a bad credit, you can apply for the Business Capital One Spark Classic. You only need a credit score of 550 or above. On that, you can still earn 1% cash back at your expense.
- You can save money. Speaking back to cash, Many cards provide cash back (From 1-5%) every time you swipe. In some categories there are high cash back rates where businesses spend, such as hotels, airlines, office stores, etc. For example, American Express Simplic Plus offers business credit card wireless providers and 5% cash back for purchase at the office supply store.
- You can benefit from a large sign-up bonus or 0% introduction APR period. If you qualify, a large sign-up bonus card like Chess Inc Business Favorite Card (80,000 points in the beginning of 2018) can get a free flight to market to a new area. Or, 0% introduction card with an APR term can allow you to fund your marketing activity without interest charges. How great is that?
Just be aware: APRs can be higher with business credit cards. It is not uncommon to pay 15% or more on whatever you borrow. Therefore, it is important to pay as much as possible every month to reduce interest charges. 0% Introduction Select the APR card if these fees are initially going to be very high for you. Keep in mind that after the 0% introduction period, the APR market will vary with the prime rate.
All these conditions, conditions and APR are subject to change. See the issuer's terms and conditions for the latest information.
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He funded his small business with a credit card
2- Credit Line
Just like a credit credit card, a line of credit functions, except that the limits are often high (can be more than $ 100,000). There are many benefits to using a credit line to fund your marketing budget, such as:
- Only interest paid on your money has to be paid.: This term is not in the case of loan.
- Access to real cash: Sometimes it is not convenient to keep a credit card. For example, you may pay the fees as a result of swiping cards to pay a writer, SEO expert, designer, or any other contractor.
- Ability to fill your credit limit: Like a credit card, a line of credit revolves around the credit, which means that the amount you can withdraw is returned after it has been paid. For example, if your limit is $ 50,000 and you withdraw $ 10,000, then your available credit will be $ 40,000. Pay $ 10,000 and your available credit is back to $ 50,000.
- Fair interest rates: They are often less than credit cards.
3- Personal loan for business
Personal loans come in small amounts (usually up to $ 35,000), because they are designed for personal use. They do not need collateral.
If you have a good credit, A personal loan can be a good idea To fund your marketing campaigns, you are free to use the money as you please. To not mix in personal expenses, just behave like a business loan.
To Get approved for loan, You usually need a credit score of at least 580. Loan terms are usually from 3-5 years, interest rates are as low as 5.99% and more than 36%. You will get lower rates with higher credit score.
2 loan options for established businesses to fund marketing campaigns
If you are in business for a while, bring steady income, and have made your business credit, then you should be able to qualify for a better loan product Finance marketing efforts. Think of the high amount of cash coming with lower interest rates. Looks good, is not it?
Your options for paying your marketing expense with Term Loan include:
1- Traditional term loan from bank, credit union, or online lender
When a bank or other lender gives you a term loan, you get cash to pay along with interest over many years. term loan Generally, interest rates ranging from 1-5 years to 7-30%.
To be approved, you usually need at least $ 90,000 in revenues, one year in business and a credit score of 600+. Collateral is also usually necessary. Keep in mind that you will get more money and less interest will be paid as much as your credit and revenue will be.
Since you can get anywhere from $ 25,000- $ 500,000, there are fewer obstacles to doing what you need for marketing to succeed. In one word loan you have the ability to highlight a powerful marketing strategy and to provide enough capital to get great business development.
2- SBA loan
US Small Business Administration (SBA) guarantees loans to small businesses. Generally, these loans are not only available in high quantities, but often come together Lowest interest rates and longest repayment terms.
What's here SBA loan Usually it looks like this:
- They start with 6.7% APR (beginning of 2018).
- The amount can be from $ 5,000- $ 5 million.
- Loan terms may be reduced to 5 years or 25 years.
Therefore, if you want to fund a major marketing campaign abroad, for which a lot of money will be spent, then some (if any) are better options than SBA loans. Or, if you only need cash to pay for local radio advertising, you can also choose a small loan through SBA.
Of course, there are strict requirements for lenders working with SBA. You should be in business for at least two years. For good rates and conditions, your credit score should be more than 680 Your company requires more than $ 100,000 in annual revenue.
Getting the right loan to support your marketing function
If your marketing team is limited by cash flow, then you are expected to receive one, then you should get a loan business growth. So, do your research and see which types of credit and financing products you can qualify for.
By searching all your options and comparing the offer, you can get a mix of the right loan or loan for funding your marketing efforts. Then, you can focus on what's important: by running a great marketing campaign and winning new customers.
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