Using Credit to Your Small Business’ Advantage


We tend to associate financial activities and engagements such as credit and lending with our personal lives. We take out all sorts of financial agreements on a casual basis in our day to day routine – from phone bills and energy contracts to credit cards, mortgages, and loans. However, credit can play just as large a role in our professional lives too. Here are a few ways that you can use credit to your advantage when it comes to your small business!


Starting Out or Expanding


Two of the most expensive periods in a business owners’ life will be when you’re first starting out or when you’re expanding. Both of these processes require a lot of up-front cash to get the ball rolling. Whether you end up spending on web design, market research, product development, or advertising, you’re going to be forking out somewhere. It’s situations like these when you could use a business line of credit from a reliable provider like This is a form of revolving capital and works on a similar premise to that of a credit card. The loan is open, so you will be offered a credit limit. You will be able to spend up until your given credit limit, then can clear a certain amount, which will then become available to spend again!


Making the Most of Sales


Chances are that you use the same stockist or wholesaler for the raw materials that your company uses. Whether you specialise in clothing and customise plain wholesale tees and tote bags, or sell edible arrangements and source your ingredients from fruit wholesalers, there’s bound to be someone who you go to for the main components for your products. Every now and then these companies are likely to let large amounts of stock go at a much lower price than usual. They may be trying to clear out warehouse space, old stock ahead of the launch of new stock, or they might simply be having a sale. You want to capitalise on these kinds of situations, getting as much cheap stock in as you need to tide you over. But sometimes you won’t have enough cash on hand to make the most of flash sales. Nothing is more frustrating than having to fork out the standard price for a product knowing that it was on sale just a few days before! In situations like this you could use a small loan to your advantage. If a lender agrees, you will then be able to pay them this sum back in smaller installments over a longer period of time. This allows you to benefit from the sale and not miss out!

These are just two ways that engagement with credit and lending can benefit your small business. Just make sure to only borrow what you can afford to repay and to always read through the terms of your agreement before signing up. Then stick your agreement to maintain and improve your credit score in the process.

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