Starting and running your own business is an amazing feat, and you probably spent years working towards it. As an entrepreneur, this part of the process may have come to you naturally. Many startup owners struggle with the next step: promotion. Unless you study 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 can create a post with a photo 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 accumulate. Moreover, this will not 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 company to market to you.
But what if you no longer have the capital to work with? You can consider getting 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 that you can get to promote your small business is a term loan. This is a fixed amount of money that is loaned at a fixed rate of interest. You choose a time frame or term within which you will pay.
If you take out a loan to start your own business, this will likely be the type of loan you have chosen. It is ideal when you know how much available capital you need. You can get this type of loan from banks or private lenders. As with any other business loan, you’ll pay high interest rates if you don’t have an asset to use as collateral. However, it is still cheaper than other forms of financing.
Business line of credit
A business line of credit is a type of loan that basically works like a credit card. Instead of taking a large amount of money that you then start to pay back, the money is simply provided to you. You can choose to use some or all of the available funds, but only pay for what you used.
This is ideal for companies that are not yet sure how much they will need to spend on marketing and promotion. You can start small with social media ads, and scale if necessary.
Interest rates on commercial lines of credit tend to be higher, but you only pay interest on the amount you used.
working capital loan
A working capital loan is similar to a term loan, except that the term is usually much shorter. These loans are obtained by companies to cover the funds that they need in order to operate on a daily 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 tactics you use.
Getting a business loan to promote your business can be a great investment. You will have to pay the amount used with interest, but a good upgrade will eventually pay for it (and much more).