What can business loans be used for?

Business loans can be used for a great many reasons, but here are some of the most common ones:

• Increasing working capital to cover day-to-day operating costs
• Buying a new building
• Buying another business or franchise
• Buying assets e.g. cars, vans, computers or plant and machinery
• Bridging the receipt of money from another source e.g. a land sale or tax refund
• Paying taxes
• Buying out another shareholder or partner

In most cases, you will be looking at a loan as a means of developing and growing your business, but there will be occasions when a loan is needed to meet a pressing bill or to keep the business afloat through a tough trading time. This is a legitimate purpose, but you need to be comfortable in your own mind that you can meet the repayments. Putting off until tomorrow, what needs to be addressed today is rarely a good idea and it is worth seeking professional help if you are not sure what to do.

Talk to us about the purpose of the loan you are looking for and let us guide you on your options.