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3/29/2019

What Could You Do With a Working Capital Loan?

Cash flow. It’s something you probably think about every day as a small business owner. Without cash on hand, almost everything on your to-do list is a challenge.

The simple solution? Apply for a working capital loan. 

“With a working capital loan, I was able to get more inventory, buy larger quantities at better pricing, and [I was] able to pass those savings into our customers, attracting new ones,” said Ramon Mora of Ramon’s Commercial Tire. Mora has renewed his working capital loan with CIT 14 times since 2014 and has grown his business by over 30%.

If you’re curious what your business could do with working capital, consider these six ideas:

  1. Marketing – One popular reason for seeking a working capital loan is to pay for marketing and advertising. Whether you want to refresh your brand, update your digital presence or launch a new print advertising campaign, tackle the costs with the flexibility of working capital. Enjoy the freedom to experiment with new promotional tactics or even hire a consultant to take your efforts to the next level.
  2. Inventory – Running out of inventory is a small business owner’s nightmare. If you’re going into your busy season or you hear about a great promotion, go ahead and stock up. With working capital, you can take advantage of bulk pricing or even purchase new products for your business to sell if the opportunities arise.
  3. Taxes – Faced with a tax bill your business can’t afford? A working capital loan could be just the thing to help pay it off. The IRS even recommends financing your tax payment with a loan because the cost “may be lower than the combination of interest and penalties set by the Internal Revenue Code.”1
  4. Staff – Employees are our greatest resource at CIT. Your people are the driving force for your business, too. Extra working capital might help you cover your human resource expenses even in tough times. Retain your top performers and grow your team by using working capital to bridge payroll gaps.
  5. Remodeling – Thinking about sprucing up your storefront? Tear down the old wallpaper and refresh your space for an improved customer experience. Working capital can also help fund expansions if your business is ready to take on more room.
  6. Unexpected opportunities – It often pays to be spontaneous, even in business. Seize the day by using working capital to buy out a competitor, upgrade equipment, move to a new location, or take advantage of whatever else may come along.

Set your business up for success by considering working capital. Lenders like CIT make it easy to apply.  Plus, your loan can often be funded as quickly as the same day. 

Forget your cash flow worries and start focusing on the opportunities you have with working capital.

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