Line of Credit Growing a Social Media Management Company
Author: Valerie Mellema
Date posted: 10.12.23

Many businesses start as neighborhood shops, while others are Internet businesses from the beginning. In this case, a few friends who had always loved social media and the opportunities it presents decided to open up a company that offers social media management for other brands. They put together their diverse skills and searched for clients so they could show off their chops and grow together. Everyone agreed it was nice to own a business, but things got a little more complicated as time passed.

Social Media Management Becomes Mandatory

As a social media management company, the owners had the chance to work hands-on, helping other businesses succeed. However, as time passed and word about their services got around, the client list started to explode. This led to a bit of a dilemma.

 

On the one hand, the company could stay the way it always had been and choose the best clients to take on. The owners could step back, hire skilled employees, and expand to meet high demand. In the end, they agreed the second option was the way to go.

Social Media Management Company

But Where to Get Financing?

Once the decision was made, other hard questions came up. One of the most pressing was where to get the money they needed for the transition. The owners had money saved but didn’t want to risk using it all on something uncertain. It made more sense to have a reserve in case of hard times.

It wasn’t easy to be sure how much money would be needed for this venture. They batted around ideas of $50,000, $100,000, or even more. Flexibility was clearly going to be important moving forward.

 

The Right Financing to Ensure Future Success

A traditional loan would have worked, but the owners opted for a business line of credit. It only made sense. They could get the $100,000 they needed for a couple of new employees and any software and technology they’d need for the transition. They could use as much or as little of that amount as they needed, and it would continue to be available as they grew.

 

Moving Forward With a Business Line of Credit

After looking at business loans and lines of credit, it became clear that either would work, but one had an advantage. In the end, the company received quotes for both forms of financing but decided to move forward with a business line of credit. It seemed to be the best option for the future if the window washing company was successful with commercial properties.

Top Reasons to Select a Business Line of Credit

Flexibility was an essential part of choosing a line of credit over other financial products. The knowledge was that if they didn’t use all the money, they’d only pay interest on what they did use. It could save them money and keep funds clear for the future if their company continued to grow and gain clients.

 

What Happened After Acquiring a Line of Credit

Once the line of credit came through, the owners could start hiring employees, passing on knowledge, and moving into supervisory roles. In addition, they could start taking on more clients and allow the company to grow with the additional injection of capital available from the credit line. Today, the company is doing well, and it’s likely to bring on new employees shortly.

Social Media Management Company
About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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