Using Small Business Finance

Use small business finance to get your new venture off the ground

Once your business has acquired small business financing, it can use the money for a number of purposes. For example, small business loans can be used to purchase real estate, equipment or inventory. Funds can be used for small business start-up, expansion or business acquisitions.

However, financing a small business isn't just about getting the money and using it as your business sees fit. It is important for your team to know that some small business financing companies have stipulations on how the money is spent, while other financing companies leave it up to you. So it is crucial that you investigate spending guidelines for any financing solutions for small business you are considering. As your business makes its plans for using small business finance, consider the following points:

1. Many small business lenders permit "open spending."

2. Consider using small business funding for business expansion.

3. Small business financing for real estate acquisition is available from many sources.

 

Use a loan for small business start-up

Once your business has secured a loan, you'll probably first spend your money on several "musts." One of the first requirements: register your business with the government and the IRS and pay all applicable fees. You must also get any the permits needed to start and operate your company. These might include licenses for materials handling, trucking or heavy equipment operation.
Try: Contact the IRS for information about small businesses. They'll help you register your business and provide a fee schedule and other paperwork needed. Check with Permits Plus for a list of licenses your firm will need, how long it will take to get them and for assistance in the application process.

Use small business loans to fund business growth

One of the most exciting aspects of small business ownership is the success that feeds the need to grow the business. Whether your company needs financing for more equipment, additional building space or a business acquisition, lenders have money. Some money comes with stipulations on how you can spend it, so be sure to check before you apply.
Try: Go to BuyerZone for financing for additional equipment needed by your expanding business. Note their other funding options. Secure a 504 loan from Biz Capital. The fixed-rate loan is earmarked for businesses to acquire real estate or furnishings and equipment for expansion or modernization.

Find small business lending for real estate

Most small businesses need to purchase land and buildings for their operations. Your business will find that small business financing companies offer commercial real estate loans. Some also have funding for leases and will help you manage leased properties.
Try: Get a business real estate loan from U.S. Bank to get your company started. A permanent location is a key business asset. Apply to American Finance Solutions for money for a variety of financing needs for your start-up. Take the time to speak with a business owner from the cadre of folks they've helped. They can offer tips and experiences.

 

• One source of small business finance that is often overlooked is grants. Look for government and non-profit agencies that provide funding for small businesses, often in local areas.

Copyright © 2011 Business.com, Inc. All Rights Reserved.

---