What is working capital used for?

As one of the most flexible sources of financing available to small businesses, working capital can help a small business in more ways than you might expect. The money gained from a working capital loan can be used for nearly anything your business needs to pay for or any sort of financial obligation that may come up during day-to-day operations.

While we’d be here all day if we tried listing every single thing you can use working capital for, here’s a few of the more common capital needs your small business might come across:


  • New location – using a business expansion loan to open a second (or third, or fourth) location can be good for business, not just because of the increased revenue, but because of the increased presence.
  • New facility – renting or owning a new storage or warehouse space can increase inventory or even just relieve any space issues you may have.
  • Expand inventory – buying more inventory is crucial to expansion – whether it’s keeping your #1 seller in stock or broadening your product base.
  • Hire staff – new staff can mean extended hours and improved customer service.
  • Purchase equipment – getting the latest tools for your business can help everything run smoothly.


  • Pay taxes – funding can help you pay for taxes on such the self-employment tax or an excise tax.
  • Develop a product – creating a new product can make all the difference to a small business.
  • Business working capital – sometimes you simply need capital for day-to-day operations during a slow period.


  • Update old systems – upgrading to a new point-of-sale system or inventory tracker can move your business to the forefront of efficiency and help in customer service.
  • Remodel existing locations – has your business never truly looked like you imagined? Or do you want to change it just because? Remodeling can help you make the business you’ve always wanted.
  • Refurbish old locations – if parts are outdated or even falling in to disrepair, refurbishment can keep your business modern and thriving.