Nobody wants to find themselves in a situation where they owe more money than they can pay. Being in debt is no laughing matter, and it doesn’t ever feel good. But what if we told you that going into debt can actually make you a profit in the long run. Of course, this is not the case with every kind of debt, but if you are a business owner falling on some hard times, taking out a small business loan (therefore, going into debt) could be the answer to increasing your revenue and reaching all of your financial goals. Here are three ways that getting yourself into some (reasonable) debt can actually grow your business and have you earning more money than ever before
1. Equipment Financing
If your business is failing, it might well be because you don’t have the latest, most updated equipment, appliance, or technology needed to keep up with the competition. Of course, if you have little to no cash flow coming in, you probably cannot afford to buy that new industrial-sized pizza oven or restock your building material inventory. But, if that new piece of equipment will mean the difference between a failing business and a flourishing one, it’s a good idea to take out a loan for equipment financing, spend the money on whatever new tools you need, and then start running your company more efficiently. With the money you’ll make, you can pay back the debt in no time, and you’ll find yourself in the black from now on.
2. Debt Consolidation
When you’re already in debt, the last thing you want to do is take out more money. However, sometimes in order to pay off your debt in the quickest, most efficient way, you need to take out even more of it. A debt consolidation loan is basically a lump sum of money that can be used to pay off each of the debts you already have. Why take out more debt to pay your current ones? Well, if you have multiple loans with varying interest rates, payment terms, and due dates, it is much more difficult to keep track of everything and to keep yourself from becoming overwhelmed. Instead, you can take out a debt consolidation loan, pay off your multiple lenders, and then only have to worry about one payment with one interest fee.
3. Merchant Cash Advance
Ever head the phrase “you need to spend money to make money”? Well, this is very true in many cases, and that’s where a Merchant Cash Advance comes in. Maybe you don’t need to purchase a solid piece of equipment, but you do need working capital, on-hand, in order to get things moving with your company. Having this cash, up-front, can take the burden off of trying to earn the money in order to do what your business needs. You take care of the beginning payments and let your company pay for itself.
Ready to start reaching your business goals? Check out Onebox Funding for a FREE quote, today!