As businesses began closing down amid the rapid spread of COVID-19, you might think that starting one now is a risky business. But like how every cloud has a silver lining, this might be your golden opportunity to emerge and capitalise on the new normal which arise during this pandemic.
For example, The Great Recession brought about a rise in the digital age. Well-known companies like Airbnb and Uber established during this period of time. These companies share something in common: the ability to think outside the box for solutions and opportunities that appeared because of the changing times.
With many mediums to start your business at, such as e-commerce, e-learning or even online companies, the sky is your limit! If you want to kickstart your business endeavour, here are a few reasons why you should attain a loan!
1. Build on your credit score
As a budding business entrepreneur, obtaining a large sum of a loan without an established history can be quite challenging. To put it into perspective, it’s like buying an item online from a seller with no reviews.
If you attain a short-term instant loan while making on-time repayments, you can work on increasing your credit scores. In future, getting a bigger loan would be of a slightly smoother process since you have a more credible “review”. You can also expand your network with specific moneylenders! Take note only to borrow what you can afford to pay back, though.
2. Flexible repayment options
When it comes to loan repayment, businesses tend to have more flexibility than when you’re repaying your loans as an individual. Primarily, this works in your favour as a start-up company because you might have insufficient capital to repay borrowed cash.
Usually, most businesses can repay their loans once every month. But if you’re venturing into the industry, you might have the option to split your payments to make it easier to manage with at the beginning. And once you have sufficient profit, repayment costs will eventually increase.
3. Settle start-up costs
In the quest to starting up a new business, there’ll be many factors that need to be considered, which includes research expenses, logistics, and the like. This is also known as start-up costs!
Rather than digging through your personal savings, obtaining borrowed funds to settle these costs would be much better. This is because you might stretch yourself too thin, and won’t have any resources to fall back on in case anything happens.
Hence, a business loan helps reduce, or even eliminate, financial risks that come with beginning a new operation. And if you have an outstanding amount of cash to pay, there’s always the choice of getting a consolidation loan.
4. Capability to increase workforce
Working at a start-up or small business isn’t necessarily equivalent to a one-person show. In fact, you might find yourself and your small team taking on many roles to cater to your growing business. Though it might work out at first, it might end up wearing on you and your business.
Keep your business ideas fresh and innovative by increasing your employee intake. It can be a great move if there’s a relationship between your revenue and hiring new talent! But if having too many talents dilutes your business vision, then it may not be a smart move to take.
Conclusion
There is a range of benefits to starting a business now. As the saying goes, when life gives you dirt, plant seeds. Similarly, this downturn provides both current and potential business workers with the opportunity to learn how to bootstrap to stay afloat.
With a tighter financing environment, Easyloan.com.sg would love to help enhance your journey, especially if you’re looking to obtain a fast cash loan to accelerate your business journey. For a fuss-free loan application process, give us a call if you have any questions!