The Top Loan Reasons for Small Businesses – and How Square Can Help

The Top Loan Reasons for Small Businesses – and How Square Can Help
Running a successful small business is no easy feat. Here are the top reasons for small businesses to seek a business loan – and how Square can help.
by Square Apr 19, 2016 — 2 min read
The Top Loan Reasons for Small Businesses – and How Square Can Help

This article is for informational purposes only and does not constitute legal, personal, or tax advice. The information contained herein is subject to change and may vary from time to time. For specific advice applicable to your business, please contact a professional.

Running a successful small business is no easy feat. And there are some aspects of it that are more difficult than others. Of course, these pain points can vary from business to business, but according to a 2017 survey of Australian small businesses, there are some frequent challenges shared by many small businesses.

Below are what the survey found are the top reasons these small businesses cited for seeking out a business loan – and how Square can help.

Working capital

Maintaining adequate working capital can be tricky, especially when you’re still getting established in your market. 35% of businesses surveyed reported that working capital was the pressing issue behind their need for business financing. Square Loans may be the right solution to bridge the working capital gap, giving you simple access to funds, thereby keeping your operating liquidity nice and healthy.

Business expansion

When your small business is finding its wings, it could be the right time to build on the momentum with an expansion: perhaps a new location or extension is calling, as was the case for 21% of the survey respondents. Great news if this is the case for your business too. Unfortunately though, lending delays and rejections can lead to you missing out on the perfect expansion opportunity. Square Loans seeks to provide access to funds that might make all the difference here. If you’re seeing great business results from using Square, you can also take advantage of industry-specific POS and business management tools that cater to your sector’s needs across multiple locations, including Square for Restaurants and Square for Retail.

Debt consolidation and cash management

For some businesses, an injection of cash flow through a small business loan can help facilitate a consolidation of debt and help smooth out expenses. Though there’s no easy solution to managing debts, many small businesses are able to better their financial situation with a strategic refinancing and a few smart business adjustments. Square sellers can help their business stay in the black with simple integrations that sync the Square POS to their favourite accounting software tools.

Square also provides robust analytics that give you insight into nearly all aspects of your business. You can check historical sales data, for example, to get an idea of what’s selling the best and when business is at its peak. You can also get more granular with daily sales reports across all your locations. And if you want to keep a pulse on what’s happening in real time, the Square Dashboard app lets you track your sales from anywhere.

Stock and equipment

Stock and equipment are also typical reasons businesses might take out a loan, with 6% of respondents choosing these two reasons respectively. The cost of doing business can be high when you consider the ongoing expense of holding inventory and maintaining all the equipment that keeps your business operating. Square Loans can help with these costs. Learn more about Square Loans.

Although building a small business from the ground up is one of the hardest things you can do, it’s also one of the most rewarding. That’s why Square has tools specifically designed to help small businesses overcome the most challenging hurdles.

The Bottom Line is brought to you by a global team of collaborators who believe that anyone should be able to participate and thrive in the economy.


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