Business loans. You can’t get them off your mind. You’d like to apply for one, but you’re not sure if you can. What if you can’t use a business loan for what you’re wanting to do? Could your business even use a loan right now? If you want to know what a business loan can be used for, you’re in luck. Below we’re going to over what small business and business loans can be used for.
Your restaurant is booming! It was a rough year, but now your restaurant is the toast of the town with lines going out the door! Your place is so popular people are booking their events weeks in advance. By now you might be thinking,”Could I get a business loan to expand?” Yes, you can!
But before you hop over to your lender and snag some cash, there are few things to consider. What do you predict your revenue will be like once you expand? Can you cover the loan costs and still make a profit? if you’re thinking of adding a second location instead, make sure it’s a good fit for your desired audience and that it’s easy to get to. Once you’ve figured out if you’re expanding or adding, you’re ready for your business loan.
2. You Want to Build Credit and a Relationship
Suppose you need a large business loan but don’t have the credit for it. If you think you’re out of luck, think again. One of the things a small business loan can do is help you build credit. Each time you make payments on a smaller, more affordable loan you’re showing lenders that your business is steady and your building up for credit in the process. Plus, you’ll also be building up a relationship with a lender you trust. So when you finally do have the credit for a larger loan, you’ll already know which lender to work with. It’s a win-win that’s also your in for a brighter financial future.
After many years of hard work, you finally have your bakery! You couldn’t be more proud! But as you’re checking on some rising loaves you overhear someone talking about a steam injection oven.
“Steam injection oven?” you ask.
“Yes,” the person replies, “I think it’s time we invest in one.” As the idea sinks in you realize something. You were so focused on starting the bakery with the equipment you have that it never occurred to you that you can now get a loan for a steam injection oven! Finally! A business reason to get the oven you’ve always wanted so you can bake the bread you’ve always wanted.
If this sounds like you, a business loan can help. However, think really hard about the equipment you need first. The $15K espresso machine sounds lovely, but unless you know it will grow your business, hold off and only finance the equipment you know you need.
4. Get More Inventory
Your retail business is doing well. So well, in fact, you’re nearly out of inventory! if you need to restock the shelves to keep up with demand, a business loan can help you get you the inventory you need. Just be sure to check your sales figures of the past year so you don’t restock too much. It’s never a good idea to get more inventory than people have been buying because then you’ll with a loan you might not be able to afford. The good news is that many lenders can craft your loan based on what you need so don’t stretch your wallet too thin.
5. Hire Talented People
If you find yourselves going into work when the sun comes up and leaving long after the sun sets, you and your team might be overworking yourself. This might be fine in the first few months, but after a while, you may be so drained that you won’t have the energy to do the simplest things.
A business loan can be just the thing you need. With the right business loan, you can hire qualified employees with talents to help your business grow. That way, you can get home without feeling overworked while knowing you have the manpower to keep your business moving.
Are You Thinking About a Business Loan?
