In a marketing agency, the revenue flow is rarely steady and consistent. You may have an enormous contract for one client and skyrocket into the green only to have that contract end and face lean times. Huge agencies might have the business advantage of having so many clients that they aren’t subject to these cycles and can weather the storm of high turnover. But boutique agencies and small business owners can’t rely on short term profits – they need to manage cash flow and turn to small business loans to cover short term deficits.

An unsecured business line of credit can serve as insurance to protect their bank account from lean times and as a source of working capital that can help you grow your marketing agency. After all, agencies’ products and services rely on people-power and an unsecured business line of credit allows you to maintain and expand your staff even during low seasons. Marketing agencies are unlikely to have many assets to secure small business loans, meaning an unsecured business line of credit may be your only option – you may not qualify for a cash advance, as retail businesses can, and other types of small business loans.

Let’s take a look at the top 5 ways to use an unsecured business line of credit for a marketing agency:


Qualify for Small Business Loans Without Collateral

Unlike retail, wholesale, or even transportation businesses, marketing agencies don’t generally have much to offer in the way of collateral. You might have a few computers, but that’s probably about it. That means that you may find it difficult to qualify for a cash advance, business credit card, and other kinds of small business loans.

That’s where an unsecured line of credit comes in. As long as you have been in business for at least 6 months, have $20k or more in monthly revenue, and have modest personal credit scores, you can get an unsecured small business line of credit for your marketing agency. And because there isn’t any collateral to inspect and evaluate, the process is much faster.

If you have higher credit scores or revenue, you may even get a higher credit limit, better loan terms, and lower annual fees and monthly payments. So even if you can qualify for a secured small business line of credit or other small business loans, an unsecured small business line of credit can be the right choice.


Manage Cash Flow Over the Short Term

A small business line of credit is the perfect insurance measure for marketing agencies to give them financial stability and cover short term expenses regardless of client turnover. Unlike a cash advance or other small business loans, you don’t have to take out an unsecured business line of credit when you need the loan. You can apply for it today and have it ready whenever an unexpected working capital need comes up. That means no waiting around to get approved when you need the money as soon as possible. And you only have to pay back the amount that you use, keeping your monthly payments and annual fee as low as possible.

An unsecured business line of credit keeps your finances steady, giving you a solid foundation to grow your marketing agency. You can focus on developing new clients and delivering your products and services, rather than living in fear of closing up shop because you lost an account. That also makes you more confident when dealing with your existing clients. It’s hard to overstate the business advantage that a small business line of credit can give your marketing agency.


Build Working Capital with an Unsecured Business Line of Credit

Working capital is essentially the net worth of your business: your assets and money in your bank account minus your debts and expenses. Working capital determines how much cash you have on hand to cover emergency expenses and invest in your business’s growth.

Just as an unsecured business line of credit helps you manage cash flow in the short term, it also helps you build working capital to give your business stability for the long term. It can cover your current working capital needs, especially unexpected and urgent working capital needs, letting you expand your business and your genuine working capital. And you can often get better loan terms for a small business line of credit than for other types of small business loans. So using your small business line of credit to pay off your existing loans can boost your working capital.

The best part is that a revolving line of credit is always there for your working capital needs: you can borrow up to the credit limit and re-borrow as much as you’ve paid off. That means you don’t have to open a new business line of credit just because you hit your credit limit. So a revolving line of credit is a sustainable way to supplement and support your business’s working capital.


Hire Staff to Deliver Your Products and Services

As we mentioned earlier, you need a substantial team to successfully develop and deliver products and services as a marketing agency. Even with the rise of automation, you still need people writing content, developing campaigns, and designing apps and websites.

So, your employees define the scope of your business. If you have to lay off staff because you lost an account, you can find yourself in a downward cycle where you cannot get new accounts or even lose further business. An unsecured business line of credit can prevent you from falling into that trap and can help you expand your team – and thus your earning potential – even during lean times.


Cover Short Term Software Expenses for Future Profit

Nowadays, marketing software is playing an increasingly important part of the marketing world. Implementing platforms such as Hubspot, ClickFunnels, and Marketo can help turbocharge your business by winning over new clients and delivering better results for your existing clients. But these platforms come at a price that you may not be able to afford before reaping the rewards of the new system. A small business loan such as an unsecured business line of credit can help you make the monthly payments on your marketing software before the system pays off without hurting your bank account.

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Jeremy Pearlman | Jeremy is a New York native enjoying the good life in the Big Easy. In his writing, Jeremy covers a wide-range of topics, but his specialties are personal finance and business leadership.