7 Ways to Use a Business Capital Loan

Massive, long-term loans aren’t always necessary for business growth. A shorter-term solution that’s easier to acquire might be just what you need.

Let's get started.

7 Ways to Use a Business Capital Loan

Massive, long-term loans aren’t always necessary for business growth. A shorter-term solution that’s easier to acquire might be just what you need.

You might make use of a business capital loan, also known as a working capital loan. Working capital is simply the amount of liquidity you have available. You calculate it by subtracting your short-term liabilities (like accounts payable) from your short-term assets (like cash and accounts receivable).

More working capital means you have more funds available to invest in activities that grow your business.

Business capital loans typically don’t have as extensive application requirements as traditional term loans. They help cover shorter-term expenses or increase the amount of working capital you have available.

BCCUSA’s goal is for our clients to understand their borrowing options and get the best financing source for their business. Read on to learn some ways you can use a business capital loan.

1. Cover Gaps in Working Capital

One of the main reasons many companies use business capital loans is to bridge gaps in their working capital. 

Cyclical businesses — such as seasonal companies — can make great use of business capital loans. They can hold you over through the slow season if case your busy season profits aren’t enough.

If you’re in a situation where you need a working capital loan to tide you over, you might need to work with a professional to find a lender and present your financials in the best possible light.

2. Create an Emergency Fund

If you’re busy investing profits in business growth, but you don’t yet have an emergency fund prepared for hard times, a business capital loan can set you up to weather storms. 

Some of your profits will be lost to interest. However, if your business isn’t prepared to get through a down economy, then interest may outweigh the consequences of lacking an emergency fund.

This all depends on your financial situation. Working with a business broker or another expert can help you determine if building an emergency fund is right for your situation.

3. Buy Inventory to Meet Demand

Have you experienced a recent boost in demand for your products? Perhaps you don’t yet have the capital available to meet the demand.

A business capital loan provides you the capital to buy up extra inventory and satisfy the demand. Your increase in profits will help to mitigate money lost to your loan’s interest.

Plus, you’ll increase your base of satisfied customers. That means more returning customers — which are less expensive to acquire than new customers — and more word-of-mouth marketing.

The SBA offers credit lines for seasonal businesses, called Seasonal CAPLines. You can’t use these for the slow season. They’re set aside for use during your busy season to meet excess demand.

In using these, you can stockpile excess profits to ride out the slow season.

4. Buy Inventory at a Discount

Another inventory-opportunity that a business capital loan can solve is when your supplier sells at a discount. Buying plenty of inventory at this price will help you see higher profit margins — or more customers if you lower your prices to compensate.

Assuming your inventory isn’t perishable, and you forecast sufficient demand, taking on a business capital loan to grab as much inventory as possible can set your business up for healthy profits.

5. Acquire and Service Big Clients

Every service business entrepreneur comes across a client that could make their career — yet many lack the funds to service them properly.

A business capital loan is almost an investment in this case. You’ll have the funds to service your new client adequately.

6. Invest in Marketing

You might have an exceptional product/service and offer the best customer experience… but none of that matters if you aren’t getting in front of your best prospects.

Whether you’re looking to appeal to new markets or strengthen bonds with your existing customer base, your marketing might be a prime area in which you can invest your business capital loan. 

Today, digital marketing is of the utmost importance. Use your business capital loan to invest in a fast, responsive, attractive website. Consider hiring a digital marketing specialist or working with a freelancer/agency to optimize your site for search engines (SEO), set up (and perhaps run) your social media, and create paid ad campaigns online.

Alternatively, you can purchase some marketing software programs and analysis tools and learn these things yourself. It depends on your budget and available time.

7. Invest in Your Workforce

Your workforce is one of your greatest assets. Investing in their growth only makes sense. 

Depending on your industry, investing in employee education may pay off. Your employees can learn or enhance skills to increase revenue or improve efficiency. You can compensate them for some or all of their continuing education and training.

Investing in your workforce extends to new employees, as well. After all, hiring is not a cheap process. Having more resources available helps you find better candidates for your open positions. You can hire recruiters or purchase recruiting software that makes finding qualified candidates more efficient.

Lastly, there’s pay and benefits. You could use your business capital loan to bolster employee pay or improve their benefits package — as long as doing so would motivate them to work harder for your business.

Bonus: Build Credit

Business capital loans help you build your credit, no matter what you use the funds for. Keep current on your payments to increase your credit score and set yourself up for future borrowing success.


Is a business capital loan right for you? There’s no way to be sure, but working with an expert can help. BCCUSA 

Helpful Tips & Information

How to Buy a Business With a Business Acquisition Loan

How to Buy a Business With a Business Acquisition Loan Starting and growing a business can be rewarding, but it isn’t easy to build something from the ground up. Let's get started. $ How much do you need? $10,000-$30,000 Between $30,000-$50,000 Between $100,000 - $200,000 Between $200,000 - $300,000 Between $300,000 - $400,000 Between $400,000 - $500,000 Between $500,000 - $600,000 Between $600,000 - $700,000 Between $700,000 - $800,000 Between $800,000 - $900,000 $900,000 plus 🢓 {{ vc_btn: title=SEE+YOUR+OPTIONS&shape=round&i_icon_fontawesome=fas+fa-angle-right&add_icon=true&link=url%3Ahttps%253A%252F%252Fbeforeyouborrow.com%252Fprequalify%252F%7C%7Ctarget%3A%2520_blank%7C&el_class=hdr-btn&css=.vc_custom_1596646581248%7Bmargin-bottom%3A+0px+%21important%3B%7D }}How to Buy a Business With a Business Acquisition Loan Starting and growing a business can be rewarding, but it isn’t easy to build something from the ground up. Instead, you might consider buying an existing business.  An existing business has a proven business concept. You’ll save a lot of time by not having to do the work of starting a business — picking a location, buying inventory/supplies, and creating compelling marketing to acquire customers, to name a few. But when you opt for buying a business over starting one, you’re trading the hard work of building something from scratch with the complexity of acquiring an existing entity.  Among the necessary considerations of buying a business is financing the purchase. Few [...]

Here’s What You Need to Know Before Getting Short-Term Business Loans

Here’s What You Need to Know Before Getting Short-Term Business Loans Debt can be a tremendous business resource when you use it right. But your situation doesn’t always warrant a loan with a decade-long repayment term. Let's get started. $ How much do you need? $10,000-$30,000 Between $30,000-$50,000 Between $100,000 - $200,000 Between $200,000 - $300,000 Between $300,000 - $400,000 Between $400,000 - $500,000 Between $500,000 - $600,000 Between $600,000 - $700,000 Between $700,000 - $800,000 Between $800,000 - $900,000 $900,000 plus 🢓 {{ vc_btn: title=SEE+YOUR+OPTIONS&shape=round&i_icon_fontawesome=fas+fa-angle-right&add_icon=true&link=url%3Ahttps%253A%252F%252Fbeforeyouborrow.com%252Fprequalify%252F%7C%7Ctarget%3A%2520_blank%7C&el_class=hdr-btn&css=.vc_custom_1596646581248%7Bmargin-bottom%3A+0px+%21important%3B%7D }}Here’s What You Need to Know Before Getting Short-Term Business Loans Debt can be a tremendous business resource when you use it right. But your situation doesn’t always warrant a loan with a decade-long repayment term. Sometimes, you need cash for the short-term.  If you need quick financing now but don’t want to lock yourself into a long-term arrangement, you may consider a short-term loan. Here’s what you need to know. Types of Short-Term Business Loans Term Loans Term loans are what you think of when you hear “loan”. They’re loans you get from a bank or similar lender. They tend to (but not always) require collateral.  Short-term loans have maturities of a year [...]

Can You Get a No Credit Check Business Loan?

Can You Get a No Credit Check Business Loan? Credit often stands in the way of success for businesses. Perhaps you have poor or no credit. Maybe your credit is fine, but you’d rather keep a clean report. Let's get started. $ How much do you need? $10,000-$30,000 Between $30,000-$50,000 Between $100,000 - $200,000 Between $200,000 - $300,000 Between $300,000 - $400,000 Between $400,000 - $500,000 Between $500,000 - $600,000 Between $600,000 - $700,000 Between $700,000 - $800,000 Between $800,000 - $900,000 $900,000 plus 🢓 {{ vc_btn: title=SEE+YOUR+OPTIONS&shape=round&i_icon_fontawesome=fas+fa-angle-right&add_icon=true&link=url%3Ahttps%253A%252F%252Fbeforeyouborrow.com%252Fprequalify%252F%7C%7Ctarget%3A%2520_blank%7C&el_class=hdr-btn&css=.vc_custom_1596646581248%7Bmargin-bottom%3A+0px+%21important%3B%7D }}Can You Get a No Credit Check Business Loan? Credit often stands in the way of success for businesses. Perhaps you have poor or no credit. Maybe your credit is fine, but you’d rather keep a clean report. Is it possible to find funding without lenders prying into your credit score? At BCCUSA, we aim to help you get the funding you need, no matter your situation. For your business, that might mean exploring alternatives to traditional financing vehicles that require credit checks. Learn more about your options below. Why Do Lenders Check Your Credit? When lenders lend, they’re bearing risk. Your business may fall on hard times and be unable to [...]

Are Business Loan Brokers Worth Hiring?

Are Business Loan Brokers Worth Hiring? As a small business owner, the only thing standing between you and growth is sometimes a lack of funding. You have fantastic opportunities in front of you, but you lack the capital you can invest in them. Let's get started. $ How much do you need? $10,000-$30,000 Between $30,000-$50,000 Between $100,000 - $200,000 Between $200,000 - $300,000 Between $300,000 - $400,000 Between $400,000 - $500,000 Between $500,000 - $600,000 Between $600,000 - $700,000 Between $700,000 - $800,000 Between $800,000 - $900,000 $900,000 plus 🢓 {{ vc_btn: title=SEE+YOUR+OPTIONS&shape=round&i_icon_fontawesome=fas+fa-angle-right&add_icon=true&link=url%3Ahttps%253A%252F%252Fbeforeyouborrow.com%252Fprequalify%252F%7C%7Ctarget%3A%2520_blank%7C&el_class=hdr-btn&css=.vc_custom_1596646581248%7Bmargin-bottom%3A+0px+%21important%3B%7D }}Are Business Loan Brokers Worth Hiring? As a small business owner, the only thing standing between you and growth is sometimes a lack of funding. You have fantastic opportunities in front of you, but you lack the capital you can invest in them. While researching your options, you may have come across business loan brokers. These companies aren’t banks or lenders — rather, they analyze your financial situation, then leverage a network of lenders to find the optimal credit product for your business. Of course, brokers charge a fee for this service.  Are business loan brokers worth hiring? Why not look for financing on your own and [...]

7 Easy Business Loans For When Your Credit and Financials Aren’t Perfect

7 Easy Business Loans For When Your Credit and Financials Aren’t Perfect Borrowing can be tough. The more you need the funds, the harder it is to get them. If you’re a new business or have a low credit score, you might feel shut out from the best financing sources. Let's get started. $ How much do you need? $10,000-$30,000 Between $30,000-$50,000 Between $100,000 - $200,000 Between $200,000 - $300,000 Between $300,000 - $400,000 Between $400,000 - $500,000 Between $500,000 - $600,000 Between $600,000 - $700,000 Between $700,000 - $800,000 Between $800,000 - $900,000 $900,000 plus 🢓 {{ vc_btn: title=SEE+YOUR+OPTIONS&shape=round&i_icon_fontawesome=fas+fa-angle-right&add_icon=true&link=url%3Ahttps%253A%252F%252Fbeforeyouborrow.com%252Fprequalify%252F%7C%7Ctarget%3A%2520_blank%7C&el_class=hdr-btn&css=.vc_custom_1596646581248%7Bmargin-bottom%3A+0px+%21important%3B%7D }}7 Easy Business Loans For When Your Credit and Financials Aren’t Perfect Borrowing can be tough. The more you need the funds, the harder it is to get them. If you’re a new business or have a low credit score, you might feel shut out from the best financing sources. Not to worry, though, because you still have several borrowing options. Several traditional and alternative lenders offer easy business loans if your financial picture isn’t perfect. At BCCUSA, we want every hardworking business owner to understand the lending marketplace and know they have options. To that end, we’ve aggregated a [...]

6 Ways to Use a Restaurant Business Loan to Expand

6 Ways to Use a Restaurant Business Loan to Expand The restaurant industry is not an easy business. Some 60% of restaurants fail in the first year. By year four, that number reaches 80%. Let's get started. $ How much do you need? $10,000-$30,000 Between $30,000-$50,000 Between $100,000 - $200,000 Between $200,000 - $300,000 Between $300,000 - $400,000 Between $400,000 - $500,000 Between $500,000 - $600,000 Between $600,000 - $700,000 Between $700,000 - $800,000 Between $800,000 - $900,000 $900,000 plus 🢓 {{ vc_btn: title=SEE+YOUR+OPTIONS&shape=round&i_icon_fontawesome=fas+fa-angle-right&add_icon=true&link=url%3Ahttps%253A%252F%252Fbeforeyouborrow.com%252Fprequalify%252F%7C%7Ctarget%3A%2520_blank%7C&el_class=hdr-btn&css=.vc_custom_1596646581248%7Bmargin-bottom%3A+0px+%21important%3B%7D }}6 Ways to Use a Restaurant Business Loan to Expand The restaurant industry is not an easy business. Some 60% of restaurants fail in the first year. By year four, that number reaches 80%. If you’ve made it past this gauntlet, you might be ready to obtain financing to grow your current location or even open a second one. You’re on the right track if you’re thinking about growth. But what should you invest your restaurant business loan in? Making smart investments now ensures you keep your competitive edge well into the future.  BCCUSA aims to be an excellent resource for small businesses, whether through finding the right funding for each of our clients' unique situations [...]

6 Things Need to Know Before Getting a Fast Business Loan

6 Things Need to Know Before Getting a Fast Business Loan Whether it’s a business emergency or a fantastic opportunity in front of you, you need access to capital now. Not later. Many traditional loans can take a few days (or even weeks) to process. By the time you receive the funds, it’s already too late. Let's get started. $ How much do you need? $10,000-$30,000 Between $30,000-$50,000 Between $100,000 - $200,000 Between $200,000 - $300,000 Between $300,000 - $400,000 Between $400,000 - $500,000 Between $500,000 - $600,000 Between $600,000 - $700,000 Between $700,000 - $800,000 Between $800,000 - $900,000 $900,000 plus 🢓 {{ vc_btn: title=SEE+YOUR+OPTIONS&shape=round&i_icon_fontawesome=fas+fa-angle-right&add_icon=true&link=url%3Ahttps%253A%252F%252Fbeforeyouborrow.com%252Fprequalify%252F%7C%7Ctarget%3A%2520_blank%7C&el_class=hdr-btn&css=.vc_custom_1596646581248%7Bmargin-bottom%3A+0px+%21important%3B%7D }}6 Things Need to Know Before Getting a Fast Business Loan Whether it’s a business emergency or a fantastic opportunity in front of you, you need access to capital now. Not later. Many traditional loans can take a few days (or even weeks) to process. By the time you receive the funds, it’s already too late. Instead, you need a fast business loan. There are plenty of options out there, but no matter which one you pick, you can receive the funds in as little as 24 hours. But it’s easy to overlook crucial [...]

6 Quick Business Loans For When You Need Funding Fast

6 Quick Business Loans For When You Need Funding Fast Have you ever found yourself in need of capital right away? Traditional term loans can take days, while SBA loans can take weeks. Let's get started. $ How much do you need? $10,000-$30,000 Between $30,000-$50,000 Between $100,000 - $200,000 Between $200,000 - $300,000 Between $300,000 - $400,000 Between $400,000 - $500,000 Between $500,000 - $600,000 Between $600,000 - $700,000 Between $700,000 - $800,000 Between $800,000 - $900,000 $900,000 plus 🢓 {{ vc_btn: title=SEE+YOUR+OPTIONS&shape=round&i_icon_fontawesome=fas+fa-angle-right&add_icon=true&link=url%3Ahttps%253A%252F%252Fbeforeyouborrow.com%252Fprequalify%252F%7C%7Ctarget%3A%2520_blank%7C&el_class=hdr-btn&css=.vc_custom_1596646581248%7Bmargin-bottom%3A+0px+%21important%3B%7D }}6 Quick Business Loans For When You Need Funding Fast   Have you ever found yourself in need of capital right away? Traditional term loans can take days, while SBA loans can take weeks. Fortunately, you have options. Several types of loans can be funded in as little as two days. BCCUSA aims to help you know your options so you can make informed decisions. Read on to learn about fast financing sources that are available to you. If you work with us, we can provide further guidance on choosing and obtaining a quick business loan. 1. Merchant Cash Advance Merchant cash advances are advances against your future credit sales, not loans. But no matter, because you [...]