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9 smart ways to use a small business loan

3 min read

Have you thought about how business funding could help meet your goals?

There are 30.2 million small businesses in the United States, and probably just as many reasons why funding could help their business prosper.

We’ve rounded up nine ways to put that funding toward greater growth and profitability for your business.

 

1. Hiring additional staff: Rhonda Abrams, owner of publishing company PlanningShop and author-publisher of “Hire Your First Employee,” explains that her “a-ha” moment for hiring additional staff came when she realized that she was spending valuable time running to the post office, completing administrative tasks, or invoicing.

 

“I realized that if I had help to take over the tasks that someone else could do, I could work on tasks that only I could do. It hit me that I could actually make more money by hiring someone,” said Abrams. The same could be true for you.

What could you do with funding from QuickBooks Capital?

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What could you do with funding from QuickBooks Capital?

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2. Adding space or locations: Inadequate facilities, overcrowding, or plans to add staff are all signs your business needs more space. Opening another location can make sense if business is booming at your existing site or you want to branch out to another area. In either case, you’ll need to invest.

 

3. Buying more inventory: “There was no way for us to grow without buying more inventory,” said QuickBooks Capital customer Anthony Tubbiolo, owner of True Love Honey. If that’s your business situation, it might be time to join Anthony in seizing the opportunity to purchase additional inventory.

 

4. Leasing or buying more equipment: When the time comes to lease or buy extra equipment, think about how using this equipment will lead to better productivity and revenue, how soon it’ll be outdated, the size and any additional costs. Business funding is a good avenue for leasing or buying extra equipment so growth is possible.

 

5. Refinancing existing debt: If you started your business with personal savings and high-interest credit card debt, reduce the money wasted on inflated interests costs by refinancing.

 

6. Covering rent or payroll: Working capital is crucial for small business owners to pay rent and other bills as well as employees and vendors. A small business loan can help businesses with the necessary cash flow to cover these costs as they work toward building their profits.

 

7. Overhead expenses: Business funding can keep the lights on and address other administrative or overhead expenses, such as insurance, office supplies, accounting, taxes, and salaries for administrative or HR employees.

 

8. Ramping up marketing: It’s been said that “Business has only two functions—marketing and innovation.” That’s especially true for small businesses, which need to become known quickly to compete against established competitors. Learn more about small business marketing, then use funding to build your brand.

 

9. New website: Most businesses need an online presence for prospective customers to find your products or services. Getting a website up and running can be a good starting point for using your business loan to create and sustain an e-commerce or informational website.

 

If you’re thinking about a small business loan, QuickBooks Capital can help. Start improving your business with a funding option that’s right for you.