Have you been affected by a disaster?
APPLY FOR DISASTER LOAN Close
Financing

Blogs.Financing

Register

6 Options for Financing Your Small Business Marketing Plan

Comment Count:
12

Comments welcome on this page. See Rules of Conduct.

Blogs Image

6 Options for Financing Your Small Business Marketing Plan

By Caron_Beesley, Contributor
Published: December 15, 2014 Updated: December 15, 2014

According to LegalZoom, small businesses spend up to 50 percent of their sales on introductory or marketing launch programs, while established businesses can spend up to 30 percent.

That may sound like a considerable chunk of change, but marketing is a must for small businesses – it gets you attention, helps build brand, generates demand and wins customers. But too often, marketing is seen as an unnecessary frivolity and is often the first cut from budgets when cash flow projections aren’t so healthy.

So how should you finance your small business marketing? If you can’t afford to allocate a sufficient slice of your sales revenue to fund your marketing strategy, you might consider financing it just as you would new equipment or inventory. Let’s take a look at your options.

If you’re starting up

Credit cards, crowd-funding and even friends and family are popular sources of financing for new businesses. Another popular option for new businesses is a line of credit.  

A line of credit is a given amount of money you can borrow when you need it, and repay back when you don’t. Because you can draw on it when you need it, you can continue to finance your marketing strategy over time. Lines of credit can also be more advantageous to start-ups because you only have to pay interest on the money you use – if your credit line balance is zero one month – you pay nothing, much like a credit card.

Read more about your options in Marco Carbajo’s blog: Which Unsecured Business Lines of Credit are Best for Your Business?

If your business is established

A line of credit and the other funding sources mentioned above are still useful for established businesses, but as your business matures and becomes both profitable and cash-flow positive, you may want to consider obtaining a loan to finance your marketing.

One option is the SBA Microloan program. These loans range from $500 to $50,000 and are administered by microlenders (as opposed to traditional banks who won’t consider lending such small amounts). Microloans are well suited to start-up and smaller businesses such as retailers, restaurants, hair salons, and so on, that don’t have huge financing needs and may or may not have great credit. Inc.com offers a great explanation of the pros and cons of microloans.

If you need more funds, consider the SBA Express loan program. A subset of SBA’s flagship 7(a) loan program, SBA Express is designed for businesses with financing needs up to $350,000. The proceeds can be used to finance a variety of business activities and no collateral is required for loans up to $25,000 (although a business plan and strong business credit are essential). The application process is also more streamlined and benefits businesses who need easy access to funding – loans are usually reviewed and approved within 36 hours.

Read more about what SBA loans are all about and talk to an SBA lender to help determine your eligibility for the Express program.

The bottom line

Marketing is an investment in future sales – whether you’re a freelancer in need of a new website to attract more clients or a retail store looking to generate more foot traffic. Don’t ignore it. If you’re not convinced, read these 10 Reasons You Can’t Afford Not to Market Your Small Business from the Udemy blog.

Related resources

About the Author:

Caron_Beesley
Caron Beesley

Contributor

Caron Beesley is a small business owner, a writer, and marketing communications consultant. Caron works with the SBA.gov team to promote essential government resources that help entrepreneurs and small business owners start-up, grow and succeed. Follow Caron on Twitter: @caronbeesley

Comments:

Are you thinking of where to apply for a Loan? Think no Further as we have set up a financial home to reduce your stress and Hassles... Kindly Contact Us Via email for more details about our Loan Services... Contact Email: peterwilliams@caramail.com
HOW TO GET A FAST AND RELIABLE LOAN FROM A GENUINE LOAN COMPANY AT 3% INTEREST RATE. How i got my Desired Loan Amount from a Reliable Loan Company (BRANDON LOAN COMPANY) Are you looking for a business loan and have been denied by a bank, Brandon Loan Company can help with loans from $5,000.00 to the maximum amount $1,000,000.00 that can help you rebuild your business and get you back and put you on a path towards a better financial future. Just in time, you can apply in minutes and get your cash in 48Hrs. My name is Anderson, I am from the Ohio, United State, am here to testify of how i got my loan from BRANDON LOAN COMPANY after i applied two(2) times from various loan lenders who claimed that they will help me get a business loan, i thought their lending was real and i applied but they never gave me loan until a friend introduced me to BRANDON LOAN COMPANY, who promised to help me with a loan of my desire and they did as promised without any form of delay, I had doubts but i never seize to believe. I never thought there are still reliable loan lenders until i contacted this loan company were i got a loan of $75,000.00 which i used to expand my business. Be informed that this company is 100% genuine and customer's satisfaction is their greatest priority. Note all replies should be sent to the Company Email: brandonfunds@fastservice.com Phone Number: +1(315) 309-5179 SMS your email address for details. Sincerely, Mr. Meyer Nitt. Loan Officer / M.D.
Testimony of Restoration with the help of Martinez Lexie(Lexieloancompany@yahoo.com OR +18168926958).. I have been in financial mess for the past months, I'm a single mum with kids to look after. My name is Renee Joan Rothell, and am from Ridley Park, Pennsylvania. A couple of weeks ago My friend visited me and along our discussion she told me about Mr Martinez Lexie of ( Lexieloancompany@yahoo.com ); that he can help me out of my financial situation, I never believed cause I have spend so much money on different loan lenders who did nothing other than running away with my money. She advised, I gave it a try because she and some of her colleagues were rescued too by this Godsent lender with loans to revive their dying businesses and paying off bills. so I mailed him and explain all about my financial situation and therefore took me through the loan process which was very brief and easy.. After that my loan application worth 78,000.00 USD was granted, all i did was to follow the processing and be cooperative and today I am a proud business owner sharing the testimony of God-sent Lender. You can as well reach him through the Company website: http://lexieloans.bravesites.com OR text: +18168926958
Private lender loaning $10K to $1 Million in 5-7 days. Unsecured business financing in all 50 states. Use the proceeds anyway you want. Easy and fast to qualify and good or bad credit still approved. Must be 6 months in business. No startups. Call Brian at 888-328-1977 or email: brian@fastbusinessloans.online
HOW TO GET A FAST AND RELIABLE LOAN FROM A GENUINE LOAN COMPANY AT 3% INTEREST RATE. How i got my Desired Loan Amount from a Reliable Loan Company (BRANDON LOAN COMPANY) Hello everyone, My name is Seana Anderson, I am from the Ohio, United State, am here to testify of how i got my loan from BRANDON LOAN COMPANY after i applied two(2) times from various loan lenders who claimed that they will willhelp me get a business loan, i thought their lending was real and i applied but they never gave me loan until a friend introduced me to BRANDON LOAN COMPANY, who promised to help me with a loan of my desire and they did as promised without any form of delay, I had doubts but i never seize to believe. I never thought there are still reliable loan lenders until i contacted this loan company were i got a loan of $75,000.00 which i used to expand my business. Be informed that this company is 100% genuine and customer's satisfaction is our greatest priority. Note all replies should be sent to the Company Email: brandonfunds@fastservice.com Company Phone Number: +1(315) 309-5179 SMS ALLOWED SMS your personal email address to this Phone Number and the Company will email you with further information on how to APPLY. Sincerely, Mr. Meyer Nitt. Loan Officer / C.E.O
Have you been searching for how to get access to a private lender? Have you been worried how to get out of debt? Are you a business man and you need to start a new business or expand an existing one? There is hope for you because this is a private company that offers cheap loan at cheap rate of 3%. We lend as high as 25 million euros. We are government approved and our services are clear, fast and guaranteed. Visit us at Email: [info.jaafarlending@gmail.com]. Website: [http://jaafarlending44.wix.com/jaafarlendingfirmplc]
Hello, the blog was quite amazing and the details regarding financing & marketing have explained well. for finance and other things you must know the value of information which has been shared.i'm sharing this because my friend accidently started a new business and it has led to a downfall in his economy.after that he underwent personal development training at www.benchfolks.com and now doing well.
APPLY FOR A FAST LOAN TODAY@MUTUAL LOAN COMPANY....Hello everyone! Do you seek funds to pay off credits or set up a business? Do you find yourself in a bit of trouble with unpaid bills and don’t know which way to go or where turn to? Email MUTUAL LOAN COMPANY where you can get easy and reliable loan for your self or family i got a loan of $145,000.00 from this same company for Xmas, Everyone in the world can apply for this loan. MUTUAL LOAN COMPANY will give you the best service at 3% interest rate. Email Address: mutualfundstore@fastservice.com Phone Number: +1(315) 309-5179 (SMS ALLOWED)
Interesting blog! I have read many articles regarding financing & marketing still I was bit confused. Thanks for making me feel better by sharing information actually which am in need of.
small business financing system is a important for it continuing so this plan is very effective for the businessman

Pages

Leave a Comment

You must be logged in to leave comments. If you already have an SBA.gov account, Log In to leave your comment.

New users, Register for a new account and join the conversation today!