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

Read other Q&As

How to Bring a Small Business Online
How to Get a Grocery Store Business Loan
Financial Tools Every Business Should Use
How to Get Business Loans in Canada
Smarter Loans
Forward Funding
Kingsmen Capital Investments
Growth Street Capital
SharpShooter Funding
Mogo Card
RBC Avion Visa Infinite
BMO CashBack World Elite MasterCard
MBNA True Line Gold Mastercard


Didn’t find an answer to your questions?

Send us your questions and we will get back to you.

Car loan?
Personal Loan?

Top deals await you just a short
application away!