Top 3 Reasons Why Your Business Needs A Loan

Top 3 Reasons Why Your Business Needs A Loan


Remember the old saying we’ve all heard before, you have to spend money to make money? Well, there is truth in it after all. 

To put into perspective, if you want your business to grow, you have no other choice but to invest for growth, such us spending for equipment, advertising, and property, among many others.

However, the usual problem here is that managing all these costs in addition to the expense of running a business can be tricky, and paying upfront for your business needs is often impossible until your business sees more growth. 

Hence, you may find yourself running in circles. You can’t grow unless you invest, but the question is, how to invest while at the same time having enough to cover your operational costs?

Worry not, getting a small business loan could be your answer.

While taking on debt can seem scary for small business owners, truth is, a loan can help you finance changes in your business that can result in a higher return on your investment.

Here are the top 3  reasons why your business might need a loan:

1. Business Expansion

Business expansion is always necessary and a good decision for businesses. This often becomes the primary reason for businesses to take out loans. 

Of course, further growth comes at costs, such as advertising, acquiring a new property, building renovations, and increasing staff sizes, and it’s unlikely that you’ll have enough cash on hand to cover all these expenses. 

Loans can help you cover the expenses of expanding your business without draining out your operational funds, so that you can continue to serve your customers while growing your business.

2. Business Inventory

One of the largest and most difficult expenses to manage in many industries is inventory. 

The problem is that you have to invest in the products that you’ll carry before your customers can buy them and offset the cost. 

Once your business is in operation, you’ll need to continuously expand and replenish your inventory to keep up with demand and to provide better options to your customers. 

This expense is even more difficult when your business requires seasonal inventory, such as winter coats for example. 

By taking out a loan to offset inventory costs, you can stay ahead of trends and customer demand without hurting your cash flow.

3. Business Equipment

Every business has equipment that’s necessary to do the job, which could range from heavy machinery to office equipment. This equipment is expensive, wears down, and becomes outdated over time.

Unplanned expenses like the repair or replacement of broken equipment can break your budget, and sometimes running a business without working equipment isn’t an option.

Broken or faulty equipment can also increase your liability and chase off customers who need a reliable service, costing you more money in the long-term.

Loans can help you manage the cost of equipment that will allow you to maintain your business operation and provide a better experience for your customers. 

It could also help you keep your business to stay up-to-date with new technology to improve your services and interaction with customers.

Dropee Introduces SME Business Financing

Highlights on how Dropee’s SME Business Financing can benefit your business: 

  • Up to RM 200,000 financing to help you grow your business in terms of cash flow, inventories, outlet expansion, and more. 

  • A flexible loan with no collateral and convenient online application process.

  • Competitively low repayment rates between 0.8% - 1.35% per month. 

  • Repayment period within 6 to 12 months

  • Fast approval within 3-7 days. 

  • All businesses are eligible as long as you sign up with Dropee. (Sign up HERE)

READ: Why Business Financing Is Worth Considering For Your Business Now

Dropee, a B2B eCommerce Marketplace, introduces our latest financing option for our loyal users to further grow their businesses beyond providing a solution in procurement and products sourcing. 

In partnership with Grab Finance (powered by Grab’s P2P financing partners), Dropee offers business financing to small and medium-sized enterprises (businesses) registered on

This aligns with our vision to help businesses grow. With better financial support from our trusted partner, SMEs now have a better cash flow to purchase more inventories and expand their product lines. 

Interested? Sign up with Dropee and start applying! Click HERE to start.

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