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What Can Small Business Loans Be Used For?


Jeffrey Bumbales

What are the most common uses for a small business loan? You might be surprised at how often this question comes up among small business owners, but the fact is that small business loans come in different varieties and can fulfill various operational needs (such as working capital). 

Small Business Loan Uses

As opposed to traditional bank loans which might have strict conditions or limits on their usage, Credibly loans and financing are specifically designed for small businesses and can be used for nearly anything your business requires.

Purchasing Needed Equipment

No matter how your business serves its customers, every small business needs the right tools to get by. Restaurants are always going to need ovens and seating, stores are always going to need cash registers and merchandising displays, and your favorite craft beer brewery isn’t going to get much done without the right tanks and brewing supplies!

If you find yourself suddenly lacking the equipment and supplies your business needs to grow and thrive, small business financing is a great way to purchase it without having to go through the lengthy process of applying for capital from a bank.

Maintaining Inventory

For any business with a retail arm, whether you run a storefront or are strictly B2B, keeping up on your inventory levels is critical to the success of your business. Otherwise, what are you going to sell?

Whether you order your goods pre-made or you have your wares custom-made for your business, small business loans can help you keep up on your inventory levels and make sure you always have something to sell your customers.

Managing Daily Expenses

Every business has their own operating expenses, from rental and utilities to anything else you need to keep your location open and your business functioning. Trends in sales, seasonal changes, and other uncontrollable events can begin to take their toll on your business’s access to capital, and small business loans can help to cover these expenses until your business returns to full profitability.

Paying Your Employees

A fairly important one, and yet one that not a lot of people consider using small business loans for. Your employees aren’t going to show up for work if they’re not getting paid, but if you’re in a bit of a tight spot and need to make sure your workers get their checks on time, small business loans can be the ideal solution.

Of course, there are many other uses for small business loans — really, they can be used for almost anything your business needs to pay for. The next time your business needs a little extra cash to get by, skip the banks and pre-qualify for some small business financing. You’ll be surprised how helpful it can be.

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