In an ideal world, nobody would ever need to borrow money from a bank or a financial institution to grow their business. Business loans simply would not exist. Entrepreneurs would always have a sufficient amount of funds at their disposal, and whenever a new opportunity arose that required additional investment, they could carry it out by withdrawing the necessary sum from their bank accounts. Unfortunately, that’s not how things work.
Small business owners often need a cash injection to grow their businesses, and in that regard, Commercial Mortgage may be the best solution. However, nobody is attracted to the idea of paying interest on a mortgage. While it is true that interest payments can be high, you should consider this problem from a different point of view.
The question you should ask yourself when applying for a mortgage is: “Will the benefit that my company will obtain when using the borrowed money be greater than my interest payments?”. If your answer is affirmative, then you can consider that your interest rate is fair. Definitely, it’s a good idea to go ahead and borrow the money your company needs.
How can your company use the money from a commercial mortgage? Here we offer you several ideas that you may find very useful.
- Buy new equipment
It is essential to update the machinery and equipment you use in your business from time to time. If you use old tools and tools in poor condition, your productivity may decrease. In addition, you will offer a bad image if your company is customer-oriented.
But buying machinery can be expensive. You have to invest a significant amount in advance. You can always ask your provider if you provide financing through monthly payments. If this is not possible, consider a commercial loan as your second best option. A mortgage can be the perfect solution when it comes to buying equipment.
- Pay your suppliers before they give you discounts
Do you know the term “2/10 net 30”? It is a form of payment offered by many suppliers, and that has advantages. It means that if you pay within ten days after your purchase, you can get a 2% discount. The other option you have is to pay the total amount in 30 days.
Do the math for yourself. It may make sense to get a loan to pay your suppliers ahead of time and get a discount.
- Encourage your marketing activities
The most effective way to grow your business is to sell more. That’s simple but how to get it? Good entrepreneurs know that a well-focused marketing campaign can boost their sales. But traditional marketing methods and even digital marketing require investment. A mortgage used for this purpose can be an excellent investment because it will generate additional sales.
- Expand your business to other areas
With a commercial mortgage, you can grow your business by expanding your geographic coverage. This does not necessarily mean that you open a new office or a new location, nor that you rent an additional warehouse for your products. You can expand your business by expanding the radius of your potential customers, targeting clients in a nearby location through ads in the appropriate media. You can also launch an online advertising campaign aimed at a larger audience.
- Set up or improve your company’s website
If your company does not have a website, it’s time for you to build one. Small businesses with an online presence have more credibility and reach than companies that do not appear in a Google search. The money you spend on digital marketing and the improvement of your website can generate very high returns. If you do not have the money for this investment, a commercial mortgage can be a great idea.
- Increase your income by selling on credit
If you work in the business services industry, you can sell credit to your customers. Let’s imagine that you are a wholesaler that sells your products to restaurants. You can win customers to your competition if you offer more attractive credit terms. And your existing customers may decide to buy in larger quantities if you accept longer credit periods.
While this could mean higher sales and profits, you can also put your cash flow in a delicate situation. That’s where mortgages for companies can bring you a solution. If you decide to adopt this strategy, do it with caution. In your effort to increase sales volumes, do not go too far by providing the terms to your customers. Waiting too long for your payments could end up being an inconvenience.
- Improve your product or service
A superior product or a better service can attract more customers. The investment you make to improve your product or service can help you get more customers and grow your business. Remember that you may not need drastic changes in the products you offer. Often, something as simple as a change in packaging or an improvement in only one particular aspect of your products can result in an increase in your sales.