Tag Archives: loans

5 Ways to spend your business loan wisely

Business owners take out business loans for a variety of reasons, be it to get their business started or to invest in areas of their current business to help them expand and grow. The important part of taking out a business loan, however, is knowing exactly what you’re going to spend it on. And it’s important because this is how you will generate a profit to pay off the loan for maximum return on investment (ROI). When you know what you need it for, you’ll be able to use the business loan calculator to work out how much you’ll need and how much it will cost you every month to pay it off.

As a business owner, you need to make sure you spend your loan wisely and focus on the core areas of your company. We’re going to look at a few business expenses that could benefit from a business finance loan. You know better than anyone what your business needs are, and you should keep them in mind while reading through the options below.


A core asset in any business is their inventory. The product you offer your clients is what leads to sales and profit – a goal for most companies. When you apply for business finance, you have an opportunity to invest in your inventory and improve or restock in order to increase sales.

This is how you provide higher quality products and meet the demands of your customers. It’s a surefire way to earn an ROI for your business loan and have happy customers.   


For both service- and product-based companies, the business equipment that is used to manufacture products or provide services is a crucial asset. Equipment is a large expense for  businesses to buy, new or used, and there are still other costs involved in owning the equipment.

Depending on the equipment, business owners might have to pay to store the equipment somewhere safe. But for all types of equipment, there are operation, training, insurance and maintenance costs that need to be included in the business’ budget. Machinery, computers, cameras, tools and even vehicles can be considered as business equipment. Just be sure to read up on any business vehicle finance requirements when looking for vehicle-specific financial solutions.

With a business loan, you will be able to afford the costs of owning your equipment but you’ll also be able to buy more equipment and increase your production capacity. This will allow you to provide more for your customers and further increase your ROI.


Investing in your equipment and technology practically goes hand-in-hand. Upgrading your equipment and integrating the latest technologies into your business processes will open up possibilities.

Technology is becoming increasingly important in all business operations across every industry. The more up-to-date your business technology is, the better your chances of being able to offer your customers the best service.

Technology is a great way to invest in your company, and is certainly a wise way to spend a business loan. It has the ability to improve product and service quality, reduce operation costs, increase a project’s turnaround time and, overall, make work easier for each employee. If a technology seems complicated, it’s only going to prove a convenience for the company and should, therefore, be invested in.

Customers and clients are also more attracted to the latest and greatest on the market. With new technologies at your disposal, you will have an edge above your competitors and the advancements that customers are looking for. And that’s how spending your business financing on technology will encourage an ROI.   

Digital marketing

Your website and online campaigns are an important aspect of marketing your business. Great marketing leads to new customers, an increase in sales and a better brand reputation. You aren’t relevant if you aren’t invested in your business’ digital marketing efforts. Spending part of your loan on your online presence will make you visible on the internet and provide a new channel of communication with your customer base. And all of that will be in your company’s favour for an ROI.


Another wise business loan spend would be on recruitment. People are one of the greatest assets in a business. Sometimes you would need a business loan to help attain and retain the top talent in your company. They are the ones who are able to innovate and set your business as a benchmark in the industry. They are the people who your client base interact with and who, in that regard, uphold your quality service and reputation.

Any of the above business assets would benefit from a business loan. Be sure to assess your company’s needs before you apply for business finance and be prepared to allocate the funds accordingly.

Ways to Shorten Your Bond

A mortgage bond is a long-term commitment that can span between 20 – 30 years. Some home-owners might want to make changes to their future plans which would require an earlier finalization of payment on their mortgage bond.


This can be done in a number of ways, all of which can lower the repayment term significantly if you have the money to do so.

Larger Deposit

This is by far the easiest way to shorten your repayment duration. By increasing the size of your deposit, you in turn lessen the total amount owing and depending on the amount you are willing to pay on your monthly repayments, you can significantly shorten the total repayment period.

Increase Monthly Repayments

This can be done by renegotiating the repayment duration of your mortgage bond with the financial institution that is handling your home loan. By shortening the duration of your repayments, your monthly repayments will be recalculated at a higher rate.

Supplementing Monthly Repayments

If you find that you have more net surplus income than expected (e.g. certain regular payments fall away or you close an account), you could use this extra cash to supplement your monthly repayments, potentially shaving off years on your repayment period. Using a bond calculator tool can be useful in calculating your net surplus income, allowing you to make a more informed decision.


A Balloon Payment is another way in which you could secure a home loan with a shorter repayment period. Instead of paying the money upfront, as with a deposit, you will be expected to fulfil repayment on the amount owing once your monthly’s have been completed.

Refinance at a Lower Rate

If your home loan was setup initially with a fixed interest plan and the market has improved, you can refinance your home at the improved interest rate, but still pay the same rate as before. Not only will you save money in the long-term, but you will also be afforded the opportunity to shorten your repayment period by months or years.