Everyone is back in full swing this week for business as usual, but this month is also an opportunity to set yourself up for success in the year ahead.  

Here are several ways you can use a business loan in January 

Typically, January is a time where we all set New Year's resolutions, promise to go to the gym more, and give ourselves a bit of a makeover. For businesses it can also be a period of reassessment when it comes to budgets, and financial strategies. That makes it an opportune moment to leverage financing. Here's how you use business loans to benefit your business now and get off on the right foot. 

Paying for new equipment and refurbishments  

Many businesses, especially retail and hospitality, experience higher demand during the holiday season, followed by a period of quiet in the New Year. That presents an opportunity to do all the things you don't have time for in busy periods, such as refurbish your office or store, update key equipment, and restock supplies. However, the same circumstances can also create cash flow gaps in January. Business loans can be used to fund those 'January jobs' while giving you the flexibility to 'pay' for them over a period of time as things get busier again. 

Marketing and promotions 

January is a great time to set your marketing agenda and plan your promotional spending, with Valentine's Day and half term just around the corner in February, you can plan to attract new customers and prepare for upcoming busy seasons. Lining up short-term business loans means you can allocate funds to digital marketing, social media advertising, print media, or email campaigns that will boost visibility and sales. 

Hiring or training staff 

January is a good time to search for new talent or invest in existing employees through training and development programs. Once again, you can use business loans to support sensible cash flow, covering hiring costs, salaries for new employees, or training to enhance productivity and efficiency for the year ahead. 

Upgrading equipment or technology 

The start of a new year is often a time when businesses plan for upgrades or new investments to stay competitive or improve efficiency, whether that's a new commercial coffee machine or new computers for the team. Business loans can be used to purchase new equipment, software, or machinery that will help your business become more efficient or increase your capacity. 

Expanding or renovating premises 

January can be a good time to reassess your physical space, whether you need more room for operations or want to renovate to attract customers. You can use business loans to fund lease agreements, construction, or renovation costs for your store, office, or manufacturing facility. 

Building a buffer for sensible cash flow 

January is a strategic time of the year when you can plan ahead to strengthen your financial stability, especially after the peaks and troughs of the holiday season. Business loans can be a great way to support sensible cash flow and add to your working capital reserve to help navigate planned expenses and the known fluctuations at different times of the year. 

Expanding product lines and services 

A new year brings new opportunities for product innovation or service expansion. If you want to test new markets or offerings, January is the time to get started. You can use a business loan to fund research and development, prototyping, or marketing for new products or services. 

Paying corporation tax and VAT  

As we look towards the spring, many businesses will be preparing for corporation tax and VAT bills on 31st March. That can represent a significant outflow of cash which disrupts cash flow. Short-term business loans can be used to pay tax bills upfront and in full without disrupting your capital, especially if those dates occur during your business's quiet period. That way you know it's all paid, you don't miss deadlines or incur penalties. 

Top tips for using business loans  

Ultimately, a business loan in January can help you address seasonal cash flow challenges, invest in growth opportunities, or cover unexpected costs. Just make sure your business loan aligns with your business strategy and that you have a clear plan for how the funds will drive business success throughout the year. 

Cash flow planning 

Make sure you're using a business loan strategically rather than to plug a hole. Focus on business loans for new initiatives that will generate a positive return and align with your long-term business strategy. 

Repayment terms 

Be mindful of repayment schedules. Not all lenders are created equal, with some having multiple fees to account for, and repayment terms that limit the efficacy of the loan itself - such as daily or weekly repayments on short-term loans. At Rivers, our short-term loans offer 14-day repayments to proactively support business goals, while our medium-term business loans have a monthly repayment schedule to accommodate their different needs. All our loans offer total transparency when it comes to fees with a one-off arrangement fee, which can also be added to the loan amount rather than deducted from it, so that you still optimise the cash flow benefit of the borrowing.  

If you would like to find out more about our Cash Flow Solution Loans or Business Growth Funding Loans you can contact the team or check your eligibility and possible repayment amounts using the business loan calculator on our homepage.