How entrepreneurs use SBA loans to grow their businesses
When it comes to growing a business, funding is key. Fortunately, small business owners have options when deciding how to grow a company, even in competitive environments.
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When it comes to growing a business, funding is key. Fortunately, small business owners have options when deciding how to grow a company, even in competitive environments.
Often, expanding or growing an existing business comes at a financial cost. Growth may be limited by available funds. Entrepreneurs can use outside funding such as a government-backed U.S. Small Business Administration (SBA) loan to pay for the resources needed to gain new customers and enter new markets.
Let’s take a look at four ways you can use an SBA loan to grow your business.
Renting may have been a great fit at first, with lower upfront costs and prime locations available. But over time, you may be ready to grow equity and take more control by buying. Say “goodbye” to lease negotiations and purchase a property, whether that’s where you’re already located or a new space. With an SBA loan, it’s possible to purchase owner-occupied commercial real estate that has affordable monthly payments. Owning the property may also have tax advantages. Consult with a professional tax advisor for details.
Sometimes you simply need more space to accomplish your goals. A new or additional location provides extra square footage for operations and can attract new customers in the local, regional, national, or international market. An SBA loan can bring extra room for employees, equipment and customers.
SBA funds can help you remain competitive, from growing your physical presence to expanding services or acquiring another business.
Good cash flow can allow you to maintain production levels, capitalize on opportunities and continue to provide the level of service that led to your initial success.
Additional short-term or permanent working capital from an SBA loan can be used to:
At The Bank of Missouri, we understand the importance of cash flow. Our team of experts is here to review the options, from loans to cash sweep solutions.
As your business grows, so does the need for additional equipment and supplies to handle increased demand. New or upgraded machinery and updated technology could help improve operational efficiency, resulting in increased profits. SBA loans can cover the cost of equipment and related installation. From heavy machinery to IT systems to vehicle loans, there are many ways an SBA loan can meet equipment needs.
Our experienced in-house lending team is here to quickly process your application and determine if you qualify for an SBA loan. Let’s talk about your SBA loan and how you can grow your business starting today.
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