Best Ten Ways to Use a Small Business Loan


Starting your own business can be a tough prospect; especially you have never been involved with a startup before. While getting small business loans can be a struggle, deciding if you even need one and what to do with it is a great place to start. Moreover, having a plan in place will boost your chances of getting the loan, as well as give you an outline of what priorities you need to focus on with your business once it is up and running.

Of course, getting the loan is one thing (unless you use National Funding of course); determining how to best use it is quite another. Below, we will go over the ten most common ways that business owners choose to their loans on:

New Business Development

Starting a secondary business may be a good place to expand on your business portfolio. Maybe you’ve taken your first business as far as it will go and are looking to branch out and diversify. Does that about sum it up? Perhaps a key component of your business relies on another business and you wish to cut costs, while expanding your portfolio at the same time. Whatever reasons you may have, expanding your business doesn’t just mean growing in a straight line.


Making a few repairs or remodeling your facilities can be a great way to use some of that money. Not only would it provide a much needed facelift to your business, but also boost morale amongst your customers and employees alike.

Business Acquisition or Expansion

Expanding your business is a great way to grow out and reach a larger market. This can be done in a number of ways. It could be as simple as expanding your facilities out, or even acquiring a new one altogether. Purchasing an already-existing business is also a great way to grow your small business.

Business Real Estate

Perhaps your business needs a larger property to work with. For example, a transportation company might need a bigger parking lot for vehicles on-site, or perhaps a farm needs more land to plant additional crops. The reasons can vary wildly, but the simple remains that a business can’t grow unless its resources grow with it.

Advertising and Marketing

One of the keys to operating a successful business is marketing. Exposure is everything! With more money for advertising, you can reach a significantly greater customer base as well as promote your product and service to a new area.

Ordering Inventory

Keeping plenty of products and supplies in stock is one aspect that every business owner has to contend with. While it can lead to major overhead, using your loan to restock can keep your business fully-stocked and running strong


Replacing that old machine with a new one can speed up your production rates exponentially. Whether you are replacing old, worn-out machinery or getting new and innovative pieces to improve efficiency, updating your business with new equipment can help your employees be more productive along with your business

Working Capital or Debt Consolidation

Managing the financial details of a business can be a headache, even on a good day! This is especially true in the case of debt. That business loan can be used to greatly reduce that debt or give your business that extra cushion of financial protection it might need

Paying Off Higher Interest Bills

No matter who you are, bills are an inevitable part of life. This is especially true for running a business. That loan can help keep some of those bigger bills from snowballing quickly. As any small business owner can attest to, a small pile of bills can become a big pile in the blink of an eye.

10. Employee Payroll

One of the major overhead expenses for any business is paying its employees. If your business happens to fall into a slump, this may become impossible. However, using the funds from a business loan you can keep your employees on the payroll until things pick up again.


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