If you’re considering applying for a commercial loan to help your business reach the next step in its development, you might be interested to learn whether other enterprises in your sector are borrowing money. Which industries use business loans more than others?
The simple truth is that business loans are an integral part of expanding operations and fulfilling potential in pretty much every industry. Here’s a quick (and by no means comprehensive) rundown of various industries which use commercial loans, to give you an idea of their ubiquity in the modern business world, regardless of sector.
With continual repair and maintenance costs for machinery and staff payroll and premises rental fees to worry about, manufacturing can often be a never-ending struggle to stay in the black. If a piece of equipment requires replacement, in particular, a loan can come in handy.
Since the construction business often entails an incredible number of different components to come together, there is often a hierarchy of contractors and sub-contractors long enough to make anyone’s head spin. As a result, there can be lengthy delays in invoice payment, which is why the construction industry often employs invoice financing or other forms of credit.
Printing and publishing
With the world of publishing often being dependent on unpredictable factors (such as the success of a potential best-seller, for example), access to credit can be at a premium. When the Next Big Thing comes along, printers and publishers often need capital without waiting for their last project to come through.
A broad area, transportation covers everything from taxi firms and rail companies to airlines and delivery businesses. Invariably, those in the industry suffer unforeseen expenses from time to time, such as the breakdown of a vehicle or fluctuating prices of fuel, which can necessitate a loan to access capital at short notice.
Whether it be to invest in the latest agricultural technology, bring your farm into line with modern best practices or branch out into others fields like green energy, agricultural finance represents one of the biggest segments of the sector.
Speaking of energy, the power generation industry often involves expensive pieces of equipment and machinery, from monumental wind turbines to even bigger nuclear reactors. Of course, in addition to the high costs in purchasing and installing this equipment, it also requires constant maintenance and upkeep. That’s where a commercial loan can come in handy.
The leap from single enterprise to nationwide franchise is a large one – there are not many businesses which could manage it without the aid of a loan. On a smaller scale, the cash injection from a commercial loan could allow a restauranteur or publican to expand their premises, increase their outreach and enhance profit margins.
As with catering, expanding operations from a Mom’n’Pop store to a household name doesn’t happen overnight – nor does it happen without a substantial amount of capital. Loans can be instrumental in making that transition possible.
Consider a loan for your business
As you can see, businesses of all shapes, sizes and sectors require the monetary boost provided by a commercial loan to get their foot on the first rung of the ladder – or to expand their operations into pastures and markets new. To find out if a business loan is right for your company and for more impartial advice, get in touch with Genie Lending today.