A big part of running a business is making sure it grows. And a big part of ensuring growth is getting business funding to fund it. But what should you use business funding for? It’s important to know what you’re going to do with the money before it shows up in your account.
The Yoco Small Business Pulse surveyed more than 3 600 Yoco merchants and here is what they had to say about using that money effectively.
Here are the top five ways small businesses in South Africa use their cash advances
1. To buy equipment
Half of the businesses looking for capital needed it to buy equipment. It’s an essential part of keeping the ball rolling. Whether it’s a laptop to do admin, a new card machine or an oven for your bakery, equipment can make or break your productivity. But it shouldn’t break the bank. Or your business.
2. To grow the business
More than a third of businesses needed capital to help them grow. Maybe you’re launching a new product or upgrading your store. Finding capital for this can be difficult, especially if you don’t want to put up collateral. It’s a risky business, but the risk shouldn’t be on you. Nor should it hold you back from growth.
3. To buy stock
Seasonality puts major stress on many South African businesses. Every summer, people flood in and it’s mayhem. Your business is busier than usual and stock flies off your shelves. You have to make sure you’re ready. 21% of businesses need capital to buy more inventory.
4. To manage cash flow
There are countless moving parts to consider when running your business. One in five businesses need a cash advance to manage cash flow. Sometimes cash can be tight. Irregular income can make it difficult to pay rent, salaries and suppliers on time.
5. To cover business expenses
The day-to-day admin of business expenses can get the better of you sometimes. A broken window here, a deposit there and other once-off costs can cause cash flow problems later in the game. Getting a cash advance to cover those business expenses can be a huge help. 15% of businesses need capital to help with these expenses.
What you use your capital on depends on the needs of your business.
But ultimately, it should be your decision.
Eligible Yoco merchants can now access a cash advance to help grow their business. Use your funds for expansion, new staff, equipment or whatever your business needs.