The beginning of the new year is an ideal time to set goals for the upcoming months. Whether you plan to expand your product or service offerings, invest in marketing strategies, hire additional employees, or upgrade your equipment, obtaining the right business funding can make all the difference. By securing growth capital now—such as a working capital loan, a business line of credit, or funding to finance or lease equipment—you can start working toward your goals early and lay the groundwork for a successful year.
In this Huddle Business Capital blog article, we discuss the key benefits of obtaining business funding at the start of the year.
Tax season is right around the corner.
As the new year unfolds, you probably find yourself closing out last year's financial reports and getting your tax documents (e.g., income statement, balance sheet, cash flow statement, invoices, receipts) in order. Before long, the hustle and bustle of tax season will arrive. If you have to pay a significant tax bill, having sufficient capital available can be highly beneficial.
A short-term working capital loan is an effective financial solution that can help you cover your business tax debt. With a working capital loan, you can address your tax obligations on time and avoid high-interest penalties from the Internal Revenue Service (IRS).
You have go-to-market strategies planned.
If you're planning to launch new products or services this year, it's essential to act quickly. The sooner you introduce these innovations, the greater the potential benefits for your business. Depending on the type of products or services you are considering, you may need to conduct market research, implement marketing and advertising strategies, and provide employee training. Additionally, if you're launching one or more new products, you should consider equipment needs, distribution channels, and packaging and shipping requirements.
Various funding options can support your company's go-to-market strategy, including working capital loans, business lines of credit, and Small Business Administration (SBA) "Express" loans.
Your business is facing cash flow shortages.
It is common for many small businesses to experience cash flow shortages at the start of a new year. This situation can result from seasonal fluctuations, delayed customer payments, or unexpected Q4 expenses. If your company is facing cash flow issues at the start of the new year, there are solutions available.
Business term loans and short-term working capital loans can help bridge these gaps, allowing your company to maintain healthy cash flow. You can use the funds from either of these loan options to sustain inventory levels, pay suppliers, or meet payroll and other financial obligations.
You want to build your business credit score.
If you want to build your business credit score, a great way to start is at the beginning of the new year by securing a business loan, a business line of credit, or another form of business funding. Obtaining funding provides your company with essential capital and helps enhance your credit profile.
By making timely payments and maintaining a healthy debt-to-income ratio, you can demonstrate your creditworthiness to creditors and lenders. This process will help you establish a solid foundation for your business credit score, which will ultimately give you access to better financing options in the future.
Your business equipment is outdated.
Aging business equipment, machinery, vehicles, and technology can hinder productivity and compromise efficiency. Don't let this happen. Invest in new equipment that can streamline processes, enhance performance, and help your company stay competitive in the market.
By securing funding to lease or finance equipment, you can preserve your cash flow. Both of these options allow you to access essential equipment without the upfront costs that accompany outright purchases. Equipment leasing and equipment financing spread out payments over time, freeing up capital for other operational needs.
You want to worry less about money.
It's no secret that cash shortfalls can lead to stress and anxiety, especially at the start of the year when revenue may not align with expectations or the budget. By securing business funding early in the year, you can alleviate the burden of financial uncertainty and approach the months ahead with renewed confidence.
Instead of worrying about fluctuating income, you can concentrate on your company's short-term and long-term growth goals and strategies.
Disclaimer.
This Huddle Business Capital blog article is purely educational and contains general information and opinions; it is not intended to provide advice or recommendations of any kind. Huddle Business Capital is not affiliated with, nor endorses the Internal Revenue Service (IRS) or Small Business Administration (SBA).
