Home Business Insights & Advice How a small business loan can help your business

How a small business loan can help your business

by Sarah Dunsby
9th Apr 24 2:05 pm

As a small business owner, you may come across different challenges and opportunities that require an injection of capital. This is when a small business loan can be an important tool.

Read this guide for more on:

  • Types of small business loans
  • Where to get a small business loan
  • How a small business loan can help

Types of small business loans

When it comes to small business loans, there are several options to choose from for your small business:

  • Term Loans: Term loans provide a lump sum amount you repay over a fixed period, usually with a fixed interest rate. These loans are ideal for financing long-term investments such as purchasing equipment or expanding your business.
  • Business Lines of Credit: A business line of credit provides you with a revolving credit line you can tap into whenever needed. This type of loan is suitable for managing cash flow fluctuations or covering unexpected expenses. You only pay interest on the amount you borrow, making it a flexible financing option.
  • Merchant Cash Advances (MCA): An MCA could be a good option for your business if you have strong sales figures but don’t qualify for a traditional loan. It involves receiving a lump sum payment for a percentage of your future credit card sales. You’ll typically repay it through automatic deductions from your daily credit card transactions until the advance, along with fees, is paid off.

Where to get a small business loan

Qualifying for a loan at a traditional bank can be challenging. Big banks are usually risk-averse and may not lend money to your small business. Moreover, their application process is complex.

That’s why more small business owners use Levr.ai to apply for small business loans. Levr.ai is an intelligent small business loans platform built to get your business funded—fast. It guides you through the entire loan application process. Once you share a bit of information about your business, Levr.ai customises and matches you with the top lenders for the funding you need.

How a small business loan can help your business

Here are some common ways you can leverage a small business loan to help your business:

1. Emergency costs

Whether it’s the sudden loss of a major client or a global pandemic, emergencies can put a strain on your cash flow. With a small business loan, you can address unforeseen expenses and ensure that your operations continue.

2. Growth and expansion

A small business loan can provide you with the necessary funds to seize growth opportunities and take your business to the next level. Whether it’s opening a new location, hiring additional staff, or investing in research and development, a small business loan can be the catalyst for your small business.

3. Upgrades and renovations

In today’s fast-paced business landscape, staying ahead of the competition is essential. This often requires upgrading your technology, renovating your premises, or introducing new systems and processes. A small business loan can serve as an invaluable resource to finance these improvements and keep your business competitive.

4. Marketing and advertising

In the digital age, marketing and advertising have become more important than ever. From social media advertising to traditional print campaigns, a small business loan can help you reach your target audience and generate brand awareness, ultimately driving more traffic and sales to your business.

5. Maintenance and upkeep

Regular maintenance and upkeep can help keep your business’s physical assets in operational condition and mitigate the risk of equipment breakdown. However, maintenance costs can be expensive, especially if your infrastructure is due for some long-term maintenance. A small business loan can be a lifeline in such situations.

Whether you need to address emergency costs, invest in marketing, upgrade your facilities, or explore expansion opportunities, a small business loan can propel your business forward. Use an advanced small business loans platform today to check your options.

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