How to use a business loan strategically.
The SBA recently changed its loan program rules, allowing small businesses to receive larger loan sizes with fewer requirements. If you don’t need a loan for cash flow, here are some ways you can use a loan strategically to fuel your growth.
1. Refinance high interest rate debt
Even if you’re able to make payments, refinancing high interest rate debt to a lower cost, longer term loan can save a significant amount of money in interest payments now and in the future.
2. Replace or buy equipment
Identify if there is new equipment that could increase efficiency in your daily operations. Acquiring new equipment can save you and your team time and money and potentially allow you to increase your operations.
3. Expand your business
Whether you’re ready to move to a larger location, offer a wider variety of inventory, or hire new staff, a small business loan provides significant opportunity to grow your business through investments in these areas.
4. Invest in marketing and/or sales
Use your loan to help you earn more money by testing marketing initiatives or investing in sales personnel through training, incentives, or new hires.
See how much capital you can receive through an SBA 7(a) or an equipment loan by completing our prescreen application. It takes less than 10 minutes and doesn’t impact your credit score.