A business loan can be used to fund the purchase of new assets, or invest in business development. Companies can use loans to acquire or rent premises and office buildings, vehicle fleets, new equipment for their staff or even to make new hires. Usually, the lender that you approach will consider the reason for your loan, alongside other crucial factors like your ability to repay the amount owed, when deciding whether or not to loan the money.
It’s a good idea to choose a loan that is suited to your specific needs in some cases. For instance, you would use a commercial mortgage to purchase property, asset financing to fund the purchase of new tools and equipment, and a Start Up Loan to help you move into the world of entrepreneurship for the first time. This way you’re working with repayment plans that cater to your circumstances.