4 Ways Entrepreneurs Use BOI Loans to Grow Their Business
Microloans (business loans up to $50,000) are valuable types of financing for both new and growing small businesses. They can be the perfect source of funding for hiring your first employee, covering startup costs, or purchasing initial inventory for your business. Here are some popular ways that Business Ownership Initiative (BOI) clients have successfully used their loan funds:
1. WORKING CAPITAL
If you simply need cash on hand to hire employees or pay for basic expenses, acquiring working capital through a microloan can make a big difference. Using microloans for working capital purposes is especially helpful for newer, startup businesses, and sometimes those have unexpected cash flow obstacles.
2. INVENTORY OR SUPPLIES
You can use microloan funds to purchase inventory for your retail business or for production supplies and materials. This is a great way for very small businesses to scale or change their product offering by having the upfront funds to add inventory to their collection.
3. FURNITURE OR FIXTURES
Retail establishments or restaurants can use microloan funds to purchase furniture, decor, or other fixtures for their retail space. Businesses can even use these funds to purchase office furniture or fixtures necessary to get their business looking spiffy. However, keep in mind that you will need to make repayments on these funds, so it’s in your best interest to avoid using microloan funds on aesthetic improvements that won’t impact your customer experience or your bottom line.
4. MACHINERY OR EQUIPMENT
Manufacturing companies, restaurants or bakeries needing kitchen equipment, or other businesses in need of computers or IT equipment can use loans to purchase this large scale equipment. In some cases, you may even be able to use the equipment itself as collateral on your loan to avoid signing a personal guarantee.
Ready to Grow Your Startup?
A microloan can be the perfect amount of capital to get the ball rolling for your business. Taking out small ($1,000-$50,000) loan through BOI can add up to big business when invested thoughtfully. Learn more about BOI loans at www.indychamber.com/lending.