What Can You Use a Small Business Loan For?
As a small business owner, you are no doubt looking for any way to improve your bottom line. How can a loan from a reliable lender help you?
As a small-business owner, you no doubt have to keep many different plates spinning at the same time. One thing you shouldn't have to worry about as much as your daily operations is your financial flexibility.
When you're starting to worry about your bottom line more than you should, a small business loan might be a perfect solution to your problems. In fact, this kind of financing can help your company grow and improve its operations in ways you might not expect, including (but not limited to) the following:
Buying new locations or building out your current one
For many businesses that have hit a sort of plateau with their finances, it's because they don't have the physical capacity to expand operations or hire more people. Fortunately with the right financing options, you can gain the flexibility to physically grow your company, The Balance Small Business says.
You can use a small business loan to purchase a new building, or build an addition onto your current one, so that you can always meet demand.
There are many ways small business loans can help your company.
Covering payroll or hiring more people
Workers are the lifeblood of all business, but that may be particularly true when it comes to smaller companies. After all, you likely count on your staff to do a million different things, with everyone wearing a number of hats that go beyond their specific job description.
Kabbage notes that a small business loan can help to make sure they continue to be properly compensated for doing so, or to cover your costs as you bring on new staff to lighten everyone's load. This might be a particularly good idea for businesses that see seasonal ups and downs in terms of cash flow.
Improving your operations
In much the same way as having the right people on staff and the right building for your needs is vital, so too is ensuring you have the equipment and inventory you need. Square says that this is a reason many entrepreneurs turn to financing : Equipment like production machines or forklifts can be expensive and difficult to fit into a normal small business budget.
Likewise, if you need to stock up on inventory ahead of a traditional seasonal surge in interest, that kind of financing helps you get in front of the issue and immediately meet customer demand as time goes on. Similarly, this money can just be used to keep everything running smoothly behind the scenes by covering your daily expenses.
Dealing with other debts
Many small businesses accrue and pay off balances on a regular basis, and that's not usually an issue. But if you hit a rough patch and start paying high interest rates (such as on company credit cards), you can use a small business loan to consolidate your debt and start paying a lower rate.
If any of the above might be a help to your small business, it's time to consider everything that financing* will be able to do for you. Get in touch with one of the local representatives of Vectra Bank today to learn more about your options and start growing your business with confidence.
* Credit approval required. Terms, conditions and restrictions apply.
The information contained herein may not represent the views and opinions of Vectra Bank a division of Zions Bancorporation, N.A. It is presented for general informational purposes only and does not constitute tax, legal or business advice.