Four best options for financing your marketing campaign

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Date: 7 April 2022

A marketing team

Your business might have the most transformational products or services on the market, but does it have a vast pool of potential customers? Creating a product is only one part of the equation. Without sufficient sales and revenue, your business is likely to quickly run out of cash and go out of business. 

 

How do you bring a stellar commodity in front of the right customers? That's where your marketing campaign comes into play. It's a set of strategic activities designed to promote your brand and its products and services. Although there are ways to market your business without a budget, they're less likely to get results. 

 

Millions of businesses are competing to get the attention of customers. If you want to get ahead, investing in brand awareness, product launch, customer acquisition, and other crucial marketing initiatives would be good. But how can you do this when you are not yet generating sufficient income? The answer is financing, and below, we compiled the best financing options for you.

1. Online business loans

You can apply for loans online to fund your marketing operations. These loans are more flexible and faster than business loans from banks and credit unions. In addition, you can apply 24/7 and often get a quick decision since the application process is done online.

Depending on the lender you work with, you can get the fund in as little as one day if you're approved. Unlike conventional banks, online lenders don't usually require stellar business credit. This means you have a better chance to get approval - no matter your credit history.

Note that rates, terms, and eligibility requirements may vary from one lender to another, so shop around to get the right deal for your business. However, these loans are an excellent option to promote and grow your business if you can make timely payments.

2. Business line of credit

A business line of credit works like a credit card. Your business has access to a predetermined amount of funds. You can withdraw the funds anytime you need them. You only have to pay interest for the amount you borrow, not the entire credit line.

This type of financing is ideal for purchasing inventory, managing cash flow, or bridging receivables. However, you can also use this to finance marketing projects or take advantage of new business opportunities.

It's a flexible way to borrow money without commitment until you draw funds. The top drawback of this option is that new companies usually don't qualify. You will need to have been in business for at least two or more years.

3. Peer-To-Peer loans

This form of financing allows you to borrow money without working with a traditional financial institution or building society. Instead, you apply and take out a loan through a peer-to-peer (P2P) platform. The P2P website matches you with investors willing to lend money to you based on your financial needs and preferences.

You can choose the amount you need to borrow and for how long. Also, you can view the interest rates you'll have to pay and whether you qualify for a loan. Depending on the platform and your credit score, the P2P lender may offer you less than you want to borrow. This is a great choice to fund your marketing campaigns if you have an excellent credit history.

Since peer-to-peer platforms are regulated by the Financial Conduct Authority (FCA), you can ensure fairness and transparency in their services. Because of this, borrowers also have access to the Financial Ombudsman if there are any complaints.

4. Small business grants

Suppose you need an enormous sum of money for your marketing campaigns or other business endeavours. In that case, you can apply for a small business grant from the government and other organizations. And unlike a small business loan, you don't have to pay back a small business grant.

However, some of these grants are only issued if you invest the equivalent amount in your business. That's why you have to be specific on how you're going to use the funding and how it will help expand your business.

Are you ready to fund your marketing campaign with financing?

While funding your marketing campaign is an investment, it's crucial to consider if your business is ready to take on debt. To help you figure out, here are a few things you should consider:

Specific marketing goal

Securing financing without a specific goal for your marketing operations can do more harm than good. You would not want to take on debt with a lower probability of success. Remember that you'll have to pay back the debt. So, failing to reach your expected returns from your marketing campaigns can take a toll on your finances.

Effective conversion methodology

Increasing the reach of your target audience isn't the only goal of marketing. At the end of your campaign, you should be able to convert your marketing leads into sales. Is your expected profit from the campaign enough to pay back the funds you used to run the campaign? Always consider how you're going to repay the money without hurting your business finances.

Solid credit history

Although some lenders don't require solid credit history, taking a hard look at your financial situation is important. Besides getting less expensive financing, a good credit history also indicates whether your business is ready to fund your marketing campaigns with a loan or other financing options.

Secure reliable and affordable funding

Taking out a loan or tapping into your line of credit can be a great way to pay for recurring marketing expenses like social media analytics subscriptions or paid advertisements. They also come in handy to cover one-time expenses, such as launching a video campaign. But not all types of finances are created equal. Ensure to find one that you can trust and comfortably afford. 

Copyright 2022. Article made possible by site supporter Tiffany Wagner.

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