{"id":99584,"date":"2023-02-21T09:27:51","date_gmt":"2023-02-21T09:27:51","guid":{"rendered":"https:\/\/businessyield.com\/?p=99584"},"modified":"2023-02-21T09:28:44","modified_gmt":"2023-02-21T09:28:44","slug":"common-uses-for-business-microloans","status":"publish","type":"post","link":"https:\/\/businessyield.com\/bs-business\/common-uses-for-business-microloans\/","title":{"rendered":"Common Uses for Business Microloans","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n
A business loan can help you grow your company and achieve your goals. However, it’s important to consider the size of your business and the type of financing that’s right for you. Lantern by SoFi experts explains, “microloans are loans for $50,000 or less, with SBA microloans averaging at $14,735 in FY2019.” Below are some common uses for business microloans<\/a>:<\/p>\n\n\n\n Cash flow is a significant issue for small businesses. It becomes even more important as you get started and prepare to take on more customers. A microloan can help you grow your business<\/a> and keep up with the expenses that come with growth: paying suppliers, employees and other expenses.<\/p>\n\n\n\n Microloans are also helpful if you need to invest in your business–for example, buying new equipment or renovating your office space. They can also be used as working capital if there’s a gap between invoices due from customers (and how much money those invoices will bring in).<\/p>\n\n\n\n If you’re a business owner, then inventory and supplies are an important part of your business. They’re necessary for your company to operate and survive. However, due to their high-risk nature for lenders and investors (in other words: they could lose money if there’s no demand for the product), it may be hard to get funding from traditional lenders like banks or credit unions.<\/p>\n\n\n\n You can use a business microloan to consolidate your debts and pay off high-interest credit card debt. This is because the interest rate on business microloans is typically lower than that of other types of loans.<\/p>\n\n\n\n Advertising can be expensive, but it’s one of the top ways to get your name out there. There are many different ways to advertise your business and get customers in the door. Examples include:<\/p>\n\n\n\n Working capital is a business’s money to pay its bills and keep it running. It’s the difference between current assets and current liabilities.<\/p>\n\n\n\n A common reason for applying for a business microloan is to fund a move or expansion. For example, you might need the money to pay for a new property, or you may want to use it as part of your relocation budget.<\/p>\n\n\n\n To be approved, you will need evidence that you have a good business plan in place and can repay the loan within 12 months.<\/p>\n\n\n\n Equipment can be expensive. If you need a new piece of equipment or machinery to help your business grow, a microloan could help you get it. Your current equipment may be too old and outdated, or the loan will help cover the cost of repairing something that’s broken on the machines already in use.<\/p>\n\n\n\n If you’re looking for a way to fund your business, microloans are ideal. They offer access to capital without the burden of large interest payments or extended repayment terms. And the best part? Even if you don’t qualify for a traditional loan from a bank, there are still options available for funding needs like cash flow management and equipment purchases–all without having to give up equity in your business!<\/p>\n\n\n\n <\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"A business loan can help you grow your company and achieve your goals. However, it’s important to consider…\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":79,"featured_media":99588,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[476],"tags":[],"class_list":{"0":"post-99584","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bs-business"},"jetpack_publicize_connections":[],"yoast_head":"\n<\/a>Cash management.<\/strong><\/span><\/h2>\n\n\n\n
<\/a>Inventory and supplies.<\/strong><\/span><\/h2>\n\n\n\n
<\/a>Debt consolidation.<\/strong><\/span><\/h2>\n\n\n\n
<\/a>Marketing and advertising.<\/strong><\/span><\/h2>\n\n\n\n
<\/a>Working capital.<\/strong><\/span><\/h2>\n\n\n\n
<\/a>Business relocation or expansion.<\/strong><\/span><\/h2>\n\n\n\n
<\/a>Equipment purchases.<\/strong><\/span><\/h2>\n\n\n\n
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