How To Use a Small Business Loan To Grow Your Business?

A small business loan is a lifeline for many small – medium business owners, how can you get and use borrowed capital to give your business the boost it needs?

Keeping a good stream of cash-flow is always pivotal to ensuring your small business stays competitive. With an overwhelming number of small businesses failing just because they are simply through a rough patch that they are not able to recover from or having a hard time fulfilling purchase orders, cash flow has been a the biggest problem amongst small to medium-sized companies, a small business loan can be the solution to help you grow your business, as long as you get the right loan and know how to manage your finances. But how can you get a business loan? and what are the best ways to use it?

How To Use A Small Business Loan To Grow Your Business

What Are the Best Ways To Use a Small Business Loan?

Purchasing Inventory

Inventory is an excellent way to manage dips in productivity and profit. It is also an excellent way for businesses to try out new products and practices. However, it is commonly an amazing way to keep the cash flow going during seasonal dips and as a way to replenish stock.


One of the most important ways businesses can acquire new customers and retain them is to invest in marketing. With a variety of approaches, from paid media to social media marketing, having the right strategy can help grow your business.

Refinancing Debt

Consolidating debt is one of the best ways to use small business loans, whether it’s to pay down certain debts or refinance previous loans.

Purchasing Equipment

It’s common for businesses to fund large-scale purchases such as equipment in order to improve the quality and scale of his production. 

Day-To-Day Expenses

Small businesses can neglect the things that keep the business running. From electricity costs and other utilities to smaller things such as stationery, a small business loan can keep your business well-stocked in the right foundations.


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Where Can I Get a Loan To Grow My Business?​

Having the right loan to expand your business means you are setting your company on a path towards greater success. Growth is not just about a cash injection but is about a combination of factors, including the right growth strategy and vision alongside a sufficient amount of capital.

Traditional Banks

For anybody looking to acquire a small business loan, traditional banks are one approach. However, it’s important to remember the low approval rates of these loans due to the high credit requirements, the time it takes to finalize, strict the guidelines, and that most lender require a collateral to be placed against the loan.  

SBA Loans 

Small Business Administration (SBA) 7(a) loan is a term loan that can be used in a variety of settings, including business acquisition, working capital, and debt refinancing. This type of loan tends to come with low rates and a 10-year repayment term. Unfortunately this loan type is as equally hard to acquire as the traditional banking loans.

Alternative Loans

Due to the complexity in acquiring traditional banking loans many new lenders have appeared to fill in the void left by the traditional banks. TOday you are able to apply with alternative lenders for a wide variety of funding options such as Lines of Credit, Merchant Cash Advance, Long Term Loans and more.
The down-side of this loan types is that usually you will need to compromise on either the rate, the term or on the payment frequency. 

Looking for a loan to grow your business but you have more questions left?

Book a free Business Funding Consultation with one of our professional Funding Managers and have all your questions answered.