Before you obtain small business financing for your business, it’s time to be strategic about how to utilize that money for maximum benefit.

After all, that money is costing you money in the form of interest and fees — so you want to make sure that you invest it wisely in ways that will generate revenue or save valuable time and money for your business. The answers might be slightly different depending on your type of business or industry, but in general, there are a few major categories of business expenses where you should spend your business loan money.

Try to focus your spending on these six core business needs:

1. Inventory

If you run a retail business, keeping your inventory up-to-date and appealing to your customers is one of the most important areas for you to in.. The money you spend on inventory will immediately generate a return on investment as customers buy from you. Getting a small business inventory loan is a great financial strategy because it gives you the flexibility to buy more inventory at the right time, at the right price, or obtain hard-to-find inventory and buy it exactly when you need it most for your business, regardless of your current cash flow situation. You can learn more about inventory loans and how to use them here.

2. New Website

Your website is the front door to your business — so why do so many small businesses have outdated, clunky websites that are not mobile optimized and that make it hard for customers to purchase goods? Use your small business loan money to get your website up to speed, with a responsive design that looks good.. Consider upgrading your online shopping experience. Is it easy, clear and intuitive for customers to quickly find what they want to buy and actually click the “buy” button? Online shoppers are often impatient and will leave your site if they can’t quickly find what they need. Invest some money in a web developer or design firm who can get your business’ website up to speed!

3. New Business Location

For brick-and-mortar businesses, your location can often make a big difference in your success. Especially if you run a retail store, it might be worth investing some money in moving to a new location with better foot traffic so you get more potential customers coming in the door. It’s true that “you get what you pay for.” Even if the rent is $2,000 more a month, what if that better location could expose your business to 1,000 additional customers?Even if your business is not a retail establishment, you still might gain productivity or reduce costs by moving to a new location or upgrading your office environment. Your business’ location sends a powerful message about your success and your future prospects to both customers and to prospective employees.

4. Hiring

A small business loan can also be used to hire new talent, especially if you need to hire a recruiting firm. Sometimes it’s worth investing in a more extensive recruiting process to make sure you get the right people for the job. Ultimately, this will save you money by avoiding the costs of employee turnover.

5. Marketing

You need to spend money to make money, and this is especially true with marketing. Getting a sudden influx of small business financing can be a good occasion to invest in your marketing efforts. Fortunately, there are more options than ever before for small business owners to use focused, measurable online advertising methods. including Facebook ads, and PPC ads in Google search. You can also invest in marketing automation software that helps your company send automated emails, track new business leads and store records of conversations you had with business prospects.

6. New Equipment

Small business loans are also a good source of funds for one-time capital investments, like new business equipment. If you have heavy machinery or expensive equipment that you need in order to make your business operate, you might regularly need to buy new business equipment. In this case it is often smart to borrow money.Whether it’s buying inventory, beefing up your marketing, investing in new talent, or relocating to a new location, try to apply your loan to areas of your business that will immediately make you more money.With a solid business model and a steady stream of customers, a small business loan can help lay a strong foundation for the future growth of your business.


Whether it’s buying inventory, beefing up your marketing, investing in new talent, or relocating to a new location, try to apply your loan to areas of your business that will immediately make you more money.With a solid business model and a steady stream of customers, a small business loan can help lay a strong foundation for the future growth of your business.

About the Author

Yamarie Grullon has years of experience creating helpful & engaging content for small business owners. As Manager of Content Strategy at ShopKeep, Yamarie provides merchants with practical advice on all things related to their business or their POS system.