Want to grow your digital ad campaigns without draining your cash? Using business credit can help you fund ads on platforms like Google, Facebook, and TikTok while keeping your cash flow intact. Here's how it works:
- Why Use Credit? Preserve 60-90 days of operating reserves by leveraging credit for ad spend. Options include business loans, credit cards, and revenue-based financing.
- Top Platforms: Google Ads offers a 2:1 ROAS, Facebook boasts a 9.21% conversion rate, and TikTok delivers 53% higher engagement than traditional platforms.
- Credit Options: Business credit cards like Brex provide 4x rewards on ad spend, while revenue-based financing adjusts repayments based on sales.
- Strategy Tips: Allocate budgets wisely (e.g., 30% for testing, 60% for scaling), match financing to platform timelines, and monitor key metrics like ROAS and CPA.
Quick Comparison of Credit Options:
| Financing Type | Best For | Pros | Cons | Example Providers |
|---|---|---|---|---|
| Term Loans | Large ad budgets | Fixed payments, predictable terms | Requires collateral | SLR Business Credit |
| Business Credit Cards | Platform testing | Rewards, fraud protection | Higher APR (13.12-19.87%) | Brex |
| Revenue-Based Financing | Seasonal campaigns | Flexible repayments tied to sales | Higher overall cost | Onramp Funds |
Use a mix of these methods to keep campaigns running smoothly and maximize your ad performance. Ready to fund your growth? Start by aligning your credit choice with your ad goals!
The EASY Way To Get Business Credit Cards
Business Credit Types for Ad Spending
Different credit options can help businesses manage ad spending effectively, depending on their specific needs and goals.
Credit Options: Loans, Credit Lines, and Cards
Traditional business loans from banks like Wells Fargo and Bank of America offer structured repayment plans over 3 to 5 years [1]. These are ideal for companies planning larger, long-term advertising campaigns with predictable budgets.
Platform-specific credit options also provide tailored benefits. For example, Google Ads offers a monthly invoicing system with Net 30 payment terms for accounts spending at least $5,000 per month [2]. Additionally, Google Ads includes perks like $600 in ad credits for meeting spending thresholds [4].
Business credit cards have become a popular choice for managing ad expenses. Brex, for instance, offers:
| Card Feature | Benefit |
|---|---|
| Credit Limits | $10,000 - $500,000 for Meta/Google ads [3] |
| Reward Rate | 4x points on advertising spend [3] |
| Payment Terms | Net 30 days |
These cards provide flexibility and rewards, making them a practical tool for businesses with ongoing ad budgets.
Sales-Based Financing Options
Revenue-based financing is another option, especially for businesses with seasonal sales or fluctuating advertising budgets. This approach ties repayments directly to revenue, offering flexibility when income varies.
"74% of beta users in Google's AdWords Business Credit program finance more than half of their ad spend through credit products" [5]
For companies with more established operations, combining different credit types often yields the best results. Here's an example of how credit can be allocated effectively:
| Credit Type | Amount | Purpose | Terms |
|---|---|---|---|
| Virtual Card | $20,000 | TikTok/Google Ads | 4x rewards [3] |
| Platform Credit | $5,000 | Google Search | Net 30 terms [2] |
Using a mix of credit options helps businesses maintain flexibility while optimizing costs.
Picking the Right Ad Financing Method
Choosing the right way to fund your advertising efforts depends on your business needs and the dynamics of the platforms you're using. It's not a one-size-fits-all decision - your campaign goals and financial situation play a big role.
Key Decision Factors
When deciding how to finance your ads, there are three main things to think about:
- Your ROI Timeline: If you're running Google Ads, results typically appear within 3 to 6 months. For these longer-term campaigns, term loans with fixed payments can work well. On the other hand, platforms like TikTok, which provide quicker feedback, might be better suited for short-term financing options, such as business credit cards.
- Platform Requirements: Not all platforms are the same. For example, Facebook and TikTok tend to have fewer restrictions, making them ideal for revenue-based financing options that offer more flexibility.
- Payment Flexibility: Seasonal businesses, where sales fluctuate, need financing that adapts to their cash flow. Revenue-based financing can be a smart choice here since repayments adjust based on daily sales. This setup avoids straining your budget during slow periods while allowing for higher ad spending during peak times.
Comparing Funding Options
Each financing method fits different strategies and business models. Here's a quick look at the pros and cons of the major options:
| Financing Type | Best For | Pros | Cons | Example Providers |
|---|---|---|---|---|
| Term Loans | Large ad budgets | Predictable payments, fixed interest | Requires collateral, strict qualifications | SLR Business Credit |
| Business Credit Cards | Platform testing | Fraud protection | Higher APR (13.12-19.87%) | Brex |
| Revenue-Based Financing | Seasonal campaigns | Flexible repayments tied to sales | Higher overall cost | Onramp Funds |
Using a mix of financing methods can help you stay flexible while managing your budget. For example, you might use term loans for stable platforms like Google and revenue-based financing for more unpredictable channels like TikTok. This approach helps keep your campaigns running smoothly without putting too much strain on your cash flow.
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4 Steps to Fund Digital Ads
1. Plan Your Ad Budget
Once you've decided on your financing method, allocate your budget wisely based on platform needs:
Start by estimating your total ad spend and dividing it across platforms. For example, B2B advertisers might put 60-70% toward Google Search, while DTC brands could use a 50/30/20 split across TikTok, Facebook, and Google [6]. Add a 10-15% buffer for A/B testing to refine your campaigns.
Match your ad spend strategy to your financing choice. Revenue-based financing works well for TikTok's fluctuating CPM, while term loans are better suited for Google's more predictable CPC.
| Platform | Average Cost | Best For |
|---|---|---|
| Google Ads | $1-$2 CPC | B2B, Lead Generation |
| TikTok | $0.50-$1 CPM | Brand Awareness, DTC |
| Variable CPM | Retargeting, eCommerce |
2. Apply for Credit
Define clear goals for your ad spend, such as: "Boost conversions by 25% in Q3 with a $5,000 monthly Facebook budget" [7]. Choose the credit option that aligns with your platform strategy and repayment plan.
3. Distribute Ad Spending
Maximize the impact of your credit-funded campaigns by tailoring your approach to each platform. For Google Ads, use Target CPA bidding and set daily caps at 20% of your total budget [4]. On Facebook, take advantage of Advantage+ shopping campaigns with automatic placements [3]. For TikTok, focus on Spark Ads, leveraging trending content and testing weekly.
- Set daily spending limits at 80% of your budget.
- Use automated pause rules to stop campaigns when CPA exceeds 150% of your target [8].
- Apply cross-platform frequency caps to limit users to 3+ ad views per week [6].
Payment Planning and Results
After setting your budgets across platforms, it's crucial to align your repayment plans with your campaign timelines.
Sync Payments with Ad Performance
Make sure your credit repayment schedule aligns with when you expect to see returns from your ads. For short-term campaigns, consider credit lines with Net 30 terms to match Google Ads' monthly invoicing system [2]. For longer campaigns, especially those running across multiple platforms for 3-5 years, extended financing options can be a better fit [1].
Tie payment milestones to your campaign's performance. For instance, if you're running a $10,000 monthly Facebook campaign, set up automatic payment increases when your ROAS (Return on Ad Spend) surpasses 4:1 [4]. This approach helps you maintain a 25% cash reserve for any unexpected changes [1].
Keep an Eye on Key Ad Metrics
Track these key metrics to ensure your ad performance aligns with your financial planning:
| Metric | Target Threshold | Action Point |
|---|---|---|
| ROAS | Minimum 4:1 | Increase spending when exceeded |
| CPA | Under 25% of product margin | Pause campaigns if this is exceeded |
| LTV:CAC | Minimum 3:1 | Adjust credit usage accordingly |
Tools like Google Ads Performance Planner can help you predict payment needs based on how your campaigns scale [4].
Flexible Repayment with Sales-Based Options
Revenue-based financing can help when your ad performance varies. This approach adjusts repayments based on your actual sales, making it a useful addition to the credit strategies discussed earlier.
For example, if you're spending $10,000 monthly on ads across various platforms and generating $200,000 in monthly sales, a 5% revenue share automatically adjusts your repayment. This eases the pressure of fixed payments during periods of campaign optimization, as outlined in Step 3.
Leverage multi-touch attribution to pinpoint which channels deliver the best results [2].
Conclusion: Fund Your Ad Growth
Key Takeaways
Using business credit can help you grow your ad campaigns effectively - especially when paired with strong performance metrics, tested strategies, and flexible financing.
Here are the core principles to remember:
- Aim for a 2:1 conversion value-to-cost ratio [4].
- Use staggered credit renewals to maintain flexibility.
How to Start Funding Your Ads
If you're ready to put these ideas into action, start by comparing financing options with your campaign goals. For testing new campaigns, revolving credit with Net 30 terms works well, as it syncs with Google Ads' monthly billing system [2]. Once you see consistent success, consider term loans for scaling - especially if your ROAS hits 300% or higher [4].
As mentioned earlier, platforms like Onramp Funds offer a revenue-based repayment model. This approach can support a mix of TikTok awareness campaigns and Google conversion campaigns, creating a well-rounded strategy for growth.
