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Updated: April 1st, 2020
One of the most effective strategies for long-term business growth is hiring. The right hire can help your business both financially and operationally.
It can be expensive, however, to find, onboard, train, and pay for a new employee — but financing can help. A business loan boosts your working capital, allowing you to spend money on hiring without limiting cash flow or disrupting regular operations.
Here are four reasons you should consider taking out a loan for hiring employees:
The old adage that sometimes you have to spend money to make money is true. Hiring comes with inevitable costs, but a great candidate has the potential to significantly increase your business’ profits.
Depending on the role you’re hiring for, a new employee could either earn major money selling your product, help secure new customers and contacts, or create new products.
Most business owners hire employees because they need help in some capacity. Though it may take a couple weeks or months to onboard and train a new person, the right hire should ultimately save you energy, time, and stress.
Hiring someone to assume a portion of your job responsibilities frees you up to focus on big-picture strategy, including finding new ways to profit. If you’re the main point of contact for your clients, for instance, hiring a project manager to take over your correspondences will give you more time to explore growth opportunities.
Bringing on another person helps balance the workload so your employees are less likely to feel overworked or overly stressed. Particularly if your employees are logging unusually long days or experiencing burnout, hiring someone new can help ease the pressure and improve workplace satisfaction.
Though there are immediate benefits to spreading out the workload, hiring is also a long-term strategy that may lead to higher retention rates and a better bottom line. When employees are happier and less stressed, they’re more likely to be more efficient, creative, and productive at work.
Hiring is one of the simplest ways to introduce a new element of your business. For instance, if you own a marketing agency, hiring a videographer to create and shoot promotional videos for your clients could help you stand out from competitors who may only offer photos. Or, if you struggle to manage inventory, bringing on an experienced warehouse manager can help you sell more and improve cash flow.
Someone who brings a unique background or expertise to your company is invaluable; in addition to expanding your business’ product line or set of services, that person can also train other employees and help diversify the company skillset.
There are plenty of options for business loans, but Funding Circle stands out for our speed, affordability, and service. Our rates are competitive with traditional lenders; you can borrow over six months to five years, with competitive interest rates.
The best part? The entire process is quick and easy. You can apply in minutes and get a decision in as little as 24 hours after document submission. No need to stall the hiring process and risk losing an amazing candidate to your competition. If you’re approved, you’ll get the funds in as few as five days after you accept the offer and can start making payments immediately.
Plus, with a simple one-time origination fee, you’ll never get tripped up with hidden fees or prepayment penalties. We offer fixed rates and once-monthly payments so you can stick to your hiring budget instead of playing catch up.
Paige Smith is a Content Marketing Writer and Senior Contributing Writer at Funding Circle. She has a bachelor's degree in English Literature from Cal Poly San Luis Obispo, and specializes in writing about the intersection of business, finance, and tech. Paige has written for a number of B2B industry leaders, including fintech companies, small business lenders, and business credit resource sites.