What can I use my business loan for?

A business loan should be used for business reasons, such as:

  • Marketing campaigns to increase brand awareness.
  • Opening new store locations to reach more customers.
  • Expansion of operations.
  • Purchase of assets such as a new vehicle for deliveries.
  • Upgrading old equipment.

There are, however, cases in which it is not advised to use a business loan, such as paying overdue bills and employee salaries. If a business cannot pay for basic expenses, it is an indicator that it is not profitable and taking out a loan would only add more debt.

Therefore, it is important to be certain that obtaining a loan will generate revenue for your business, and that you can sustain repayments of the loan and accrued interest in the long term. 

Jul 30 - Comparewise Business Loan Banner

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