Marketing finance to enable the implementation of strategies to increase sales is available through Jade Finance with affordable commercial loan options. Taking on credit to fund promotional and marketing activities may not be something that business owners have previously considered. But given the recent economic conditions with costs-of-living pressuring sales across many industries, cash flow may not be available to fund business development and promotional initiatives. Finance may provide a very realistic and achievable solution to implementing 2025 strategies now, and getting a head start on the competition.
Financing non-asset business expenses can be facilitated through a number of different types of commercial credit products. We cover off on the features and benefits of the different credit options, what is required to be eligible, and how business owners can secure a workable solution to suit their specific requirements.
What is Marketing Finance?
Marketing finance is essentially business credit to cover the expenses associated with promotional activities, business development, marketing initiatives, and advertising campaigns. The specifics, the concepts and strategies will vary with the business and industry but may include a range of costs to be covered.
Financing can be provided to cover the costs of creative and other consultants, designers, digital specialists, media advertising, billboards, promotional gifts and giveaways, point of sale material for seller outlets, launch events and similar inclusions.
Business Loan Options to Finance Marketing Strategies
Financing for marketing and promotional activities is non-asset credit and is provided through a choice of several commercial loan products:-
Lender Overdrafts: This line of credit form of funding is an extremely flexible and versatile commercial loan facility. A credit limit is established when the application is approved, and funds made available to the business by a lender to that limit. The business has the flexibility to use as much of that limit as is required and at the time the expenses are due.
Where the marketing activities involve multiple suppliers over possibly several months, an overdraft allows the business to be able to pay the invoices as they arrive. Interest is charged by the lender on a monthly basis and only on the amount of credit which has been used in that time period.
Operators can pay down the overdraft in line with their turnover. The term for an overdraft can be negotiated by our experts to suit individual requirements. It may be for a short term – a few months, or over a longer period of 6-12 months. Some businesses opt for an ongoing overdraft or line of credit where they experience cash flow shortages due to the seasonal nature of the business.
Secured Business Loans: This type of credit has fixed rates, fixed terms and fixed repayments. Allowing businesses to plan repaying the costs of marketing programs over a longer period. While elements of marketing activities would not be acceptable as loan collateral, where a business can provide other property or assets as collateral, a secured format loan may provide a very cost-effective solution.
Due to the loan being secured with collateral, rates are extremely competitive, and terms can be approved to deliver manageable monthly repayments.
Unsecured Business Loans: Where collateral is not available for a secured format loan, unsecured options are available. This type of credit does have a higher rate of interest than a secured format loan but may provide a workable credit solution for many businesses to cover a range of expenditure.
Comparing Marketing Finance Options
To decide which form of credit is the most suitable for the purpose required, businesses can compare options based on interest rates, terms, and loan amounts required.
In comparing interest rates on the different options, note that secured and unsecured loans may be arranged with fixed rates which won’t change if the RBA announces changes to the cash rate and lenders follow. Overdrafts are usually offered with variable rates. If rate changes are announced, changes to the overdraft rate may be applied. With rate cuts strongly tipped for at least 2025, this may mean a reduced rate moving forward..
The terms available on different credit products can be considered in relation to the loan amount required. If the business projects an immediate and positive response to the initiatives and a resultant increase in turnover, a flexible overdraft may suit. This allows the operator to pay down the loan as cash flow allows. Loans arranged over fixed terms may suit large amounts or where the resultant response in turnover may be realised over a longer timeframe. Giving operators more time to repay the loan.
Speak with Our Experts for Workable Marketing Finance
Our brokers are specialists in sourcing and structuring commercial financing solutions to suit specific purposes. Speak with us to have the options detailed and quotes obtained from across our large selection of lenders, for your consideration.
Get ahead of the competition with marketing finance to action your plans. Contact Jade Finance on 1300 000 008 for quotes on the credit options available.
DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS
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