Unsecured Business Loans for Marketing Finance
Being an experienced provider of commercial finance solutions, we understand that businesses often need a financial boost to enhance their marketing initiatives. While taking on debt to achieve growth may seem counterintuitive, with a well devised plan, funds can be utilised to set up a marketing campaign that greatly increases and pushes sales. Whether it’s launching a new product, expanding into new markets, or strengthening an online presence, marketing is, and always will be, an integral component of business growth.
For most SMEs, having quick access to a small to medium sized unsecured business loan can mean the difference between capitalising on a marketing opportunity, and being stuck without an option to fund a significant campaign. A business owner may also be seeking to revitalise their brand. Continue reading to explore how an unsecured business loan can serve as the catalyst for your marketing ambitions.
Understanding Marketing Finance
Marketing finance refers to the allocation of funds specifically for marketing purposes, regardless of the campaign avenue you choose to pursue. It can encompass various aspects, from public relations and event sponsorship, to digital advertising and product launches, to name but a few. Effective marketing finance management ensures that these initiatives translate into tangible growth and return on investment, which is why it is advised to have an effective plan devised prior to securing a facility. In the current year, and the rise of digital platforms, marketing strategies have evolved, and so have the financial tools used to support them.
Key Aspects of Marketing Finance
There are several components that each play a crucial role in marketing finance, influencing the decision to opt for an unsecured business loan for marketing initiatives, and helping you tailor the type of campaign you should launch for the best return on investment (ROI).
- Campaign Budgeting: As well as planning, a well executed marketing campaign requires careful budgeting to maximise its impact and ROI. Because of the flexibility that an unsecured loan offers, the facility can prove to be the ideal solution without compromising other areas of the business.
- Brand Development: Establishing and maintaining a strong brand is vital for the long-term success of any business. Whether it’s a rebranding effort or an expansion into new markets, a well utilised loan can help finance these endeavours to ensure that your brand continues to resonate with your target audience.
- Digital Marketing: Aside from word of mouth, digital marketing has become the most effective way to spread the message of your business. From SEO and search engine promotions, to social media and newsletter updates, business loans can help growing brands stay ahead of the curve by financing the latest digital strategies.
- Product Launches: As with any product launch, businesses should aim to invest a scalable amount of resources into their marketing campaigns. Unsecured loans allow for businesses to smooth over any potential dips in short-term working capital, funnelling the right amount of funds into an effective marketing plan, and ultimately reaping the long-term rewards the ROI offers.
Benefits of Unsecured Business Loans for Marketing:
- Flexibility: Due to the convenience of unsecured loans which can be secured at between £10k to £2m with Nucleus Commercial Finance, and repayable across any period between 3 months to 6 years, the sum and allocation towards your campaign can be directly tailored to your size and need.
- Speed: Quick access to funds means you can align your facility with a product launch, act fast on time-sensitive marketing opportunities or respond promptly to shifting market trends. Due to Nucleus’ open banking integration, your application can be processed in minutes, with access to funds potentially being in your account within the same day.
- No Collateral: With our business facilities you can preserve your vital asset base by opting for an unsecured loan. It doesn’t require any collateral, giving peace of mind and allowing your full attention to focus on financing an effective marketing campaign.
Considerations and Best Practices:
- ROI Estimation: Before taking out a loan for marketing purposes, take the time to realistically estimate the potential return on investment the facility can secure you to ensure that the benefits outweigh the costs. A well utilised loan can bring many benefits and opportunities to a business, so ensure you familiarise yourself with a comprehensive plan, and speak to a financial advisor before committing.
- Short-term Focus: Unsecured marketing loans are best suited for short-term initiatives with a clear endpoint, ensuring that the debt does not become a long term burden, and encouraging prospective borrowers to ensure they have a detailed plan of action to ensure a positive ROI.
- Credit Profile: To secure any kind of loan, lender’s will expect a prospective borrower to demonstrate an acceptable credit history, and while every case can differ when it comes to securing a facility, once funds are obtained, frequent timely repayments can help develop a business’s credit profile.
By understanding your business’s marketing needs and the various components that require financing, you can effectively leverage an unsecured business loan to fuel the growth of your brand and pull yourself ahead of the competition.
Ideal Marketing Strategies for an Unsecured Business Loan
The sum of funds available through an unsecured business loan can be the ideal solution for SMEs looking to broadcast themselves to audiences they have not yet reached. While long term marketing campaigns will rapidly build in costs over prolonged periods, a well utilised short-term loan can be perfect for a multi-channel marketing strategy, particularly for startups looking to capitalise on timely opportunities.
- Explanation: Digital advertising will typically encompass various online platforms, where ads will appear for targeted audience’s searches. Pay-Per-Click (PPC) campaigns on search engines like Google allow businesses to reach the top of search results for specific keywords, and each time their ad converts to a click they are charged an agreed sum. Paid social media ads on platforms like Facebook and Instagram can also be tailored to specific audience demographics and interests.
- Example: A local bakery might use a Google based PPC campaign to appear in search results when people search for ‘best cupcakes near me’. Simultaneously they can run targeted Facebook ads showcasing their unique cupcake flavours to users within their geographical radius and local bakery groups. Of course, the more avenues you pursue, the pricier your campaign will be, and is another reason why any marketing strategy should be comprehensively researched and planned prior to launch.
- Explanation: Viral marketing involves reaching out to social media influencers who hold sway in your niche, and offering them your service or product in exchange for them sharing a review to their audience. This can lead to a larger effect of their followers then sharing your product, generating viral numbers and spreading your brand name rapidly. Viral marketing can also be ideal as it is often only the costs of the production of your product that you will part with, rather than an investment of additional funds.
- Example: A newly established sportswear brand could first reach out to, then if accepted, send their latest running shoes to popular fitness influencers on Instagram. As these influencers share their positive experiences, their followers might start posting their own content wearing the shoes, creating a viral effect, and potentially reaching new markets to boost income.
- Explanation: Content marketing largely focuses on creating and posting valuable, relevant, and consistent content to attract and retain a clearly defined audience. This can include blogs that provide useful information, engaging videos, or infographics that simplify complex topics, and bring some intrigue to readers.
- Example: A financial advisory firm might create a series of blog posts offering financial tips to post on their website. An infographic can accompany each post, explaining retirement planning, and a video series on investment strategies, all aimed at educating their audience and establishing their expertise. With consistency and charisma, such marketing can become a familiar place for like minded individuals to gather, read, comment and share your content.
- Explanation: Email marketing involves sending targeted and personalised messages to a list of subscribers, typically returning customers who have already signed up to your site or service. This marketing strategy can range from promotional emails that inform audiences of new products to newsletters discussing the industry and any news related to it. Similar to online content marketing, a well put together email campaign will be looked upon like a welcome series for subscribers.
- Example: An online clothing retailer could use email marketing to send personalised recommendations based on past purchases, along with exclusive discount codes for seasonal events. They might also use automated emails to follow up with customers who abandoned their shopping carts, or softly request a review for a product they have recently purchased.
SEO (Search Engine Optimisation)
- Explanation: SEO involves optimising website content to improve its visibility in search engine results pages, as well as developing topical authority on Google and establishing a backlink profile to help traffic flow. SEO campaigns typically take some months before the work starts to pay off due to the nature of Google’s indexing system, however once rankings are established for target keywords, they can prove to be the most effective long term marketing solution available.
- Example: A local restaurant might aim to optimise their website by including keywords like ‘best Italian restaurant in London’, ensuring their menu is online and searchable, and creating blog content about their signature dishes, thereby improving their chances of appearing in local search results for their selected keywords. Once established as an authority, their restaurant will appear on the first page of Google, resulting in a much greater click through rate than those ranking beneath.
Strategically pursued on all five fronts, a well pushed marketing campaign in this fashion has the potential to raise brand awareness for new audiences across a diverse spectrum of avenues, and will be effective regardless of how long you have been trading or how large your enterprise is.
Securing a Business Loan for Marketing
At Nucleus Commercial Finance we specialise in providing quick and adaptable loans to businesses of all sizes and across all sectors. Our streamlined process integrates Open Banking technology, allowing us to assess your needs extremely quickly and efficiently, offering suitable financial solutions with confidence and transparency.
If you’re interested in learning how we can support your business’s marketing endeavours with tailored financial solutions then don’t hesitate to get in touch with our team of friendly experts. Alternatively, if you are confident in your plan and have spoken to your own financial advisors, you can apply for a Nucleus loan online, and be assessed within minutes. Reach out to us at 020 7839 1980 or request a callback at your convenience.