How to Leverage a Small Business Loan
Entrepreneurs spanning every industry rely on small business loans to successfully fund their organizations. Whether you’re getting ready to open the doors on a new business or are looking to expand your operations, you may be able to benefit from a small business loan. If you’ve been considering expanding your operations and aren’t sure if a small business loan is right for you, read more about how you can leverage this loan type to help your business grow and thrive.
Consider Your Industry
If you’re wondering if your business qualifies for a small business loan, you may be surprised to know how many different industries can take advantage of this loan type to grow their operations. Small business loans are available for several industry types, including:
- Child care
- Veterinary practices
- Vehicle repair shops
- Fuel services
- Car dealerships
Even if your business doesn’t fall in one of these industry types, you shouldn’t be concerned. Small business loans can work for many different industries, so talk to your lender to see if you still qualify.
Reasons for Small Business Loans
Before you begin the process of applying for a small business loan, you’ll need to consider your purpose. Like any other business loan, you’ll need to share your reason for applying with your lender. Small business loans serve specific purposes, like making building improvements, acquiring equipment, and much more. Uses for small business loans include:
- Starting or expanding your business
- Commercial property acquisitions
- Construction or renovations
- Bridge financing
- Hotel and resort financing
- Refinancing existing debt
- Franchise financing
- Purchasing or leasing equipment
- Acquiring large business assets
- Heavy equipment
- Trucking or long-haul equipment
- Laundry or dry cleaning machinery
- Manufacturing equipment
- Medical equipment
There are many perks to taking out a small business loan. Many loans offer financing up to 80% of your purchase price, which allows you to have a smaller down payment so you can keep your operating cash free for other purchases. They also come with longer repayment terms than standard loans and have no prepayment penalties if you decide to pay your loan off early.
With so many great reasons to take out a small business loan, it’s easy to see why so many business owners take advantage of this loan type to help grow and expand their operations.