How to Stay on Top When Competition Grows

 

As a brick-and-mortar CBD store, there’s only so much you can grow. With the Internet sprawling with options, some people chose to take their business there rather than needing to shop in a physical store. Between this and local competition, the store owners were starting to feel the heat.

 

The idea of moving into the online space came up several times before the owners decided to make the leap. It would end up being a complicated process but could give the brand more business and customers than would ever be possible as a single storefront in one location.

 

The Price Tag to Enter the Online CBD World

 

After making the decision to move in a new direction, the biggest question was related to costs. How much would it take to create an online storefront that would impress the denizens of the Internet? It turned out that the number was lower than expected.

 

For about $75,000, the CBD owners could journey online to share their wares with customers across the country. That seemed reasonable but the owners wanted to find a financing option to avoid dipping too deep into savings.

Choosing the Right Financing Option

 

Deciding financing was needed was a good starting point but that left the owners to determine which option was right. A traditional loan was a potential option but they weren’t sure it was needed for a smaller endeavor. It was worth checking into other options so that’s exactly what they did.

 

As a savvy modern business, alternative lending sources seemed like a good choice. However, it was still important to make sure it worked for their specific needs. When looking over the options, the business line of credit ended up standing out.

 

Reasons to Choose a Line of Credit

 

A business line of credit allows a business to borrow money up to a certain amount. Interest is only charged on what is borrowed. It’s similar to a credit card in that way. This was a benefit since if the entire amount wasn’t needed, there would be no extra interest included.

 

To finance short-term expenses, like creating an online store, a line of credit tends to be a good choice. It has a short term and after paying off the amount of the line of credit, more money can be taken out as needed.

What Happened Next?

 

With a $75,000 business line of credit, the CBD shop was able to get an online store running. It took time, effort, and a lot of learning, but it opened without a hitch. This has given the store new customers across the country while providing additional name recognition.

 

The line of credit was paid back without the need to use all the funds, which kept the interest down. Moving into the future seems even more promising. Any changes that need to be made will be easier with the ability to dip into the line of credit.

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