Many small business owners ask themselves this question when they are first considering a loan.
The short answer is that a small business loan can be used for a variety of purposes, so long as those purposes are directly related to helping your business prosper.
Check out the following eight examples of how you can use a small business loan to help your business.
How to Use a Small Business Loan
While not every example listed may apply to your particular business, each has been used by small business owners across the country.
For many businesses, having the right equipment is essential for their operation. For example, if you own a pizza parlor, you’re going to need pizza ovens in order to make pizzas for your customers. A loan can help you secure the equipment you need to succeed.
Any business that centers around selling goods is going to need goods to sell. A small business loan can help you purchase inventory for your business. Just make sure that you have a well-formulated plan to sell your products once you acquire them.
Whether you want to expand or renovate your current location or even acquire a new one, a small business loan may be used to help you grow your business. Expanding your location(s) at the right time can do wonders for your small business and your profits.
4. Employee Payroll
Conducting payroll on a monthly basis is almost always stressful, especially if you don’t have enough funds. A small business loan can be used to help ensure that your employees are paid, allowing you to keep morale from dropping.
Getting customers in the door and remaining loyal to your brand is essential for any business. With a loan, you can conduct the marketing campaign necessary to reach more potential customers than you would otherwise.
6. Refinance or Pay-off Debt
It may seem contradictory to acquire a loan to pay off debt, but thousands of small business owners have used a small business loan to refinance or consolidate their current debt. A lower interest rate can equal a lower monthly payment which can help when you are trying to balance your books.
7. Day-to-Day Expenses
Making sure that your business runs smoothly and that the lights stay on takes both time and money. Many small business owners have had to take out a loan to help cover the costs of their day-to-day expenses.
8. Upgrade Technology
New technologies are coming out all the time that can help improve the performance of your business. If you are still using old and/or obsolete technology, that may be preventing you from making the profits that you could be otherwise.
At Sunwise Capital, we understand how hard it is to run a small business. Sometimes you need to take out a loan for that little boost to help your business take off.
If you have any questions about what you can use a small business loan for, or if you would like to see if you qualify for a loan, contact us today. We’d be happy to answer any questions you may have.