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17/04/2016

How to get the best out of your £5k business loan

By Svetlana Goode

When most people think of business loans, they often think of big numbers: £50K, £100K even £1 million.

But the impact of smaller finance, like a £5K business loan shouldn't be underestimated. Especially when it’s invested by a business in the right way.

If you’re considering a small business loan of up to £5K think wisely about how you intend to spend it. Ask yourself what is the best way to get maximum value.

New kit

Investment in equipment or machinery can boost production and reduce costs.  It can also create opportunities to offer new services to your customers. This can attract new business as well as increase your competitive edge.

Attending an exhibition

How many businesses got their big break attending an exhibition? By putting your business on show in front of the right people you can get that all-important foot in the door with new customers and suppliers. This can have a big influence on the future growth of your business.

Stock

Any good retailer will have a nose for their key products. By investing in extra stock at the right time you can give your turnover a timely boost unlocking more cash for future investment.

Company vehicle

A company vehicle can be a necessity for some trades, but it can also be a great opportunity for local advertising keeping your business visible and in front of potential customers all year round.

Cash flow

If you know the ebbs and flow of your business then you can prepare ahead. By using a loan you can make sure your business is ready to exploit its busiest times of year. 

Getting a £5K business loan may be a lot easier than you think. Whether you’re seeking finance from the private sector or a public body like Finance Wales,  an established small business with a good credit history can often raise finance without the need of a business plan.

With less information required applications can be turned around much quicker. This means you can get on with investing in your business and making your money go further.

Finance Wales offers loans from £1,000 - £2 million for business based in Wales. A new streamlined two-day application process for loans up to £5,000 is available for businesses who have traded for more than two years.