How Investing Your Business Loan In Advertising Can Be Rewarding

Investing in advertising right from the beginning can help you scale your business quickly. Read to know the reasons to invest your business loans here!

5 Jul,2022 14:48 IST 90 Views
How Investing Your Business Loan In Advertising Can Be Rewarding

Every entrepreneur think his or her business is special. In fact, entrepreneurs oftentimes tend to compare their business to their babies, indicating that these businesses are an extension of themselves.

But as special as your business may be to you, there are millions of entrepreneurs like you out there, who think similarly about their own businesses.

So, in order to stand out among those multitudes of small businesses that may directly or indirectly be competing with yours, you need to advertise your product or service and tell the prospective customer how you are better than the competition.

In fact, advertising has become all the more important for a small and fledgling business. Good advertising not only helps a small business gain visibility but also helps their product or service build credibility in the marketplace.

Does it make sense to take a business loan to meet advertising costs? Yes, undoubtedly. There are several reasons why taking a business loan might make sense in order to meet advertising costs for your business.

Targeted Advertising

Tools like Google Analytics, Facebook and LinkedIn offer micro, small and medium enterprises a very cost-effective way of getting to know what their target customers want. Using modern-day tools, companies can now target their advertising toward selected demographics and geographies where they think they have the biggest chunk of their market.

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So, not only do modern-day solutions make targeted advertising cheaper than before, they also ensure that your company and its products and services gain the maximum traction possible out of their marketing spends. Therefore, from a perspective of return on investment, these are highly efficient tools.

Digital Advertising Is Inexpensive

Before the advent of the Internet and digital media, print, radio and television were the only means by which you could reach out to your potential customers. But since the advent of digital advertising, costs have come down significantly, with models like ‘pay-per-click’ evolving.

These models, along with tools like Google Adwords, allow advertisers to gauge the impact of their advertisements very easily and at modest costs.

Stand Out In The Crowd

As mentioned before, effective advertising helps your brand stand out from the rest of the competition. When so many brands are jostling for a share of the same pie, a good advertising campaign will help create awareness about your brand in the mind of the customer.

It is a well-known fact that in a crowded market, consumers typically prefer established brands. Now, while a good-quality new brand can sustain on word of mouth for a little while, and in a small demographic and geographical domain, it is imperative that to enhance its reach, a business spends some money on advertising, to make their target audience aware of the existence of their product or service.

In fact, a good branding exercise helps boost word of mouth even further, bringing about a sort of domino effect.

Advertising Is An Investment

It may be a fallacy to consider advertising an expense. It is, in fact, an investment that helps further a business by making their potential customers aware of their company, their products and services, and how the same may be different from the rest of the competition.


Considering the fact that advertising is a necessary investment, a business loan, secured at a good rate of interest, from a reputable bank or non-bank lender such as IIFL Finance, can go a long way in boosting your company’s brand profile.

Make sure, however, that you borrow from a well-known lender like IIFL Finance, as such lenders have well-established systems in place that help you get a business loan quickly and in a hassle-free manner, with minimal paperwork.

IIFL Finance provides a range of business loan options to micro, small and medium-sized enterprises that they can take either without collateral for smaller amounts or with collateral for bigger amounts and longer tenors. MSMEs and other entrepreneurs can use these business loans to invest in advertising and establish their presence in the marketplace.

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Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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