04
February
2018

3 Smart and Profitable Ways to Allocate Unused Small Business Loan Funds

Small Business Loans - 2 Min Read

See How Much You Qualify For

Qualifications: In business for at least 9 months with at least $120K in sales over the past 9-12 months

You already have a clear idea – or possibly several clear ideas – on what you’ll do once your small business loan is approved, and the cash is in your account. However, you may discover that even after your planned purchases and investments, that you have extra cash available.

On the one hand, this is one of those truly wonderful problems to have! But on the other hand, it is still a problem, since dead money sitting in your account isn’t an asset: it’s an expense. After all, the interest you’re getting from your bank or credit union is well below inflation, plus you’re paying fees to your lender (i.e. interest costs).

If you find yourself in this situation, here are some ways that many of our clients are using their small business loan funds, and as such could be a smart business loan and profitable way for you to allocate your extra cash:

1. Negotiate Vendor Discounts

Offering to pay your vendors sooner and/or increasing how much you purchase can give you some valuable leverage to negotiate big discounts. Ideally, the money you save will more than offset the cost of carrying your small business loan. But even if you break even, it could help you get some beneficial perks from vendors, such as free shipping, more responsive support, priority/premium access to inventory, and so on.

2. Upgrade Your Website & Online Presence

It doesn’t matter if you serve individual consumers or other businesses: if your website and online presence aren’t firing on all cylinders, then you can be assured that it’s costing you customers and give your competition an undeserved advantage. Upgrading in this area should be a top priority, and a very profitable use of your extra funds.

3. Launch a Targeted Marketing Campaign

As you know, investing in marketing when your business is growing is a wise idea – because it’s like taking your sales into overdrive. But what you may not yet know, is that investing in marketing during difficult or even recessionary times is a winning strategy as well. As noted by BusinessKnowHow.com:

“During economic downturns, most companies go on the defensive — cutting back costs, downsizing marketing efforts and commoditizing products and services – just to survive. Great companies do just the opposite. In recessionary times, they position themselves to win — ramping up promotions, accelerating new product introductions, and keeping a visible profile. By taking advantage of the emerging opportunities, they not only differentiate themselves during the downturn but also position themselves for explosive growth after its turnaround.”

Learn More

Call Mulligan Funding at 855-326-3564 to discuss your financing options today!

The information shared is intended to be used for informational purposes only and you should independently research and verify.

Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.