October 06, 2021
How to Best Use Your Wholesale Business Loan
In this blog post, we’ll share a few ways that you can use your wholesale loan. Once you’ve considered all your options, be sure to take a step back to consider your business's short term and long-term goals. What works for one wholesale and distribution company might not be the best plan for your business. Due to this, you should examine your own business model and decide what will generate the best results!
5 Ways to Spend Your Wholesale Business Loan
1.Purchase Inventory
Not only can you use your loan amount tokeep inventory stocked, but you can also use these funds to invest in a more advanced tracking and managing system for your wholesale products. Everyone involved in your business processes, from your vendors to your operations department, should be on the same page when it comes to your products. A wholesale business loan can save your team a lot of stress on aninventory-management level.2.Hire More Employees
Are your employees feeling overworked, or are you struggling to keep up with growing demand? Running a wholesale business that’s understaffed can affect your overall productivity. Plus, overworked employees may pursue new opportunities if they're feeling burnt out or unappreciated in the workplace. It can be challenging to fill orders if you don’t have enough employees to do the work, so maintaining staffing levels is crucial. Once you receive a small business loan, you can expand your team, which will make it easier to meet your customers’ needs.3.Invest inMarketing Projects
Maintaining a competitive edge is imperative as a business owner in the wholesale industry. If you don't effectively market your small business, you could lose customers to your competitors. Understandably, yourretail customersare busy trying to run their own businesses, so capturing their attention can feel daunting. This is especially true if you don't allot funds in your budget to marketing strategies. Using your business loan, you can pay for marketing projects, such as:- Turn your old marketing content into videos that you can share online
- Create physical items, like brochures and pamphlets
- If marketing is not your forte, hire a marketing master who can manage these tasks for you
- Invest in online advertisements, such as Facebook or LinkedIn ads
- Pay for advertising space in trade publications
- Pay for email marketing tools, so that you can market to your existing customer base