Can you use a business loan for anything?

Can you use a business loan for anything?


Yes, you can use your business loan for absolutely anything.

The most common reasons why businesses take out financing are to:

  1. Upgrade or purchase new equipment
  2. Renovate space
  3. Add to inventory
  4. Invest into marketing
  5. Expand the business, open a new location or do something that will generate additional revenue

The typical rule of thumb is to make sure that you’re investing into something that will help you make more money and generate more revenue, and in doing so you will be able to repay the loan properly and sustain your business growth over the long term.

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Vlad Sherbatov

Vlad is the President and Co-Founder of Smarter Loans, Canada's original and largest loan comparison website. He is a passionate entrepreneur and business leader in the Canadian financial sector. He was selected as a 2019 Top 25 Leaders in Lending by the Canadian Lenders Association. Vlad is an author at Smarter Loans, and has been featured in publications like the Toronto Star and National Post, among others.