LOANS TO HIRE MORE WORKERS
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Small business loans are used for many goals but can especially help businesses in expansion mode with hiring more manpower. Success of a business can be measured by the amount of service or products the public purchases. The more success builds up, the more momentum the business gains, and the more customers come calling to the local business. Too much business is a happy problem to have, but can hurt when an entrepreneur faces the money they must leave on the table because they do not have the resources to provide goods or services to more customers. At this point, a key consideration is increasing the number of employees who can provide what the company advertises and what is in demand by the consumer.
Employees can take months to train. Some employers are lucky enough to rake through the pool of applicants and find those who have a basic skillset suitable to the field in which the company operates. Even so, no business works in exactly the same way as another. Any employee will take months to train since those with a foundational skillset will still need time to adjust to how your business runs, and those with little experience at all must learn from the ground up in order to increase production. Sometimes, this can even mean a dip in revenue, since business owners, managers, and seasoned employees alike must slowdown in order to help new workers learn, adjust, and speed up their work. A business owner investing in a worker they hope to secure for the long term should not expect them to begin covering their cost, or earning profit in excess of their costs, for at least 3 months. This time period is often labelled as the probationary period, since an owner should be able to make a decision by this point in whether or not this particular employee will be a benefit to their company. That is at least 3 months of possibly decreased profits (or at least minimal to no growth in profits) before momentum is regained and more profits come in.
In order to give the business its best chance at growing quickly and seizing extra consumer interest, it’s best to hire experienced workers. This is especially true for businesses to business dealings, where the customer is lined up and all that is needed is more manpower to supply the goods or services. Experienced workers however, cost money to take on. These are employees who have previously worked well, and earned well, at another company. They usually know they are worth a great deal to the right employer, and have references that can attest to their work ethic. While they expect higher salaries than newer employees, it may be worth buying their skills and knowledge, since the learning curve will be drastically reduced. A business loan will certainly make sure you have enough cash flow to attract and maintain such a person, who can turn around and further increase profits not only to cover their cost, but to help your business grow. No more leaving customers behind because there are simply not enough hours in the day, or week. An experienced employee will take on the excess service easily, and with the money from the loan at the ready, salary expectations for this individual are going to be well met.
Sometimes when an established company is ready to expand, it is necessary to hire multiple people at once, and in this situation, it is not always possible to grab the most qualified workers first. When the alternative to expansion means that business will not only stagnant but may actually shrink, hiring quickly can be a saving grace. Hiring in bulk, even if just for the short term, costs money as well. Each employee expects to earn their wage, whether or not they have sold enough in goods or services to actually cover the cost to employ them. Again, they will have a learning curve whatever their previous work experience is, and only after that curve is met can a business move on increase production. This is a great example of where a small business loan can help. The loan will cover the cost to employ all the additional workers, and can be paid back quickly as they start to produce profit in just a few months.
Having a business loan when expansion is hovering overhead is great, but it is also helpful to have a fund for knowledgeable employees who have suddenly become available, or who are looking to get away from a competitor. Personal circumstances change, and can do so suddenly. An employee can decide a relocation would be best for their family, or be done with the work culture at their current place of employment. Dozens of factors can come into play, but if you know the manager at a competitor’s position is not happy where they are, wouldn’t it be nice to be ready to offer them something different? New businesses especially can benefit by recruiting these skilled employees and an increase in pay is one way to make an attractive offer. With a business loan on standby, you will be optimally placed to take advantage of such opportunities, since capital is at the ready. Now, on top of the great work your new employee can give to your business, any decrease in profit from your competitor might come your way as well, all from having a business loan already available. Such an investment would be easily repaid with great benefit to the company. (If you are perhaps on the opposite end of this tactic, have a look at our page for struggling businesses here.)
In each case, an unsecured, no interest loan can definitely be an ace up your sleeve to help secure the working force you need. Hire available skilled employees or expand quickly by hiring many at once. Provide training while having a source of income to float your business until all new hires are performing as needed. Pay back just the money you used with no interest. We can help you do just that.
We know how frustrating it can be to get a business loan with high interest rates, or to not qualify at all because the company is too new. Our partner helps business owners with good credit score acquire business loans for almost any amount, regardless of the age of their company. Loans are often approved for higher amounts that the business owner hoped to receive and are interest free for 6 months, 9 months, 12 months, even up to a year and a half in some cases. Although a credit check is done when applying, this soft inquiry does not affect the applicant’s credit score. There is nothing to lose by starting the conversation. Apply today!
