You are ready to get funding for your business. You have done your homework, you know what type of business entity you are, and it is time to start looking for a funding company. One question that almost every funding company will ask you is:
What will you be using these funds for?
Which begs the question: Well, what can I use my funding for? We are here to help!
This is an easy answer, really. If it is a business-related expense, your funding will most likely cover it. This includes (but is not limited to):
This list isn’t everything you can spend your funding on, but if it is a business-related expense, you are good to go. Now, even though you can use your funding for virtually anything, there are a few things you should probably not spend your funding on, such as elaborate furniture, expensive equipment, clothing for your team, or expensive business trips.
There is nothing ethically or morally wrong with spending your funding in these areas but try to focus on key essential areas of your business that could benefit from your funding, such as growing your team, adding new essential equipment, or marketing expenses. If you can find a less expensive piece of equipment that will do what the expensive equipment can do, you can save more and use those remaining funds for other essential resources.
Again, this is an easy answer. Don’t use your funds on personal expenses. That’s really it. It is so important to keep your business and personal expenses separate, otherwise you may deal with a headache of taxes, possibly legal trouble, and hurt your chances of getting funded again. If you need to pay for personal expenses, we recommend looking into getting a personal loan or personal line of credit.
Funding for your small business allows you the opportunity and flexibility to buy the equipment you need, pay down some expenses, or hire new employees. Think of receiving funding as a growth opportunity. Use your funds however you want as it pertains to your business, but we highly recommend you use those funds towards things that will help you achieve growth, not just make your company look good aesthetically. And of course, do not use your funds for personal use. You open yourself up to huge liabilities and hurt your chances of being able to get funded in the future.
If you are ready to get started on the process to receive funding for your business, that’s awesome! We would love to help. Reach out to one of our funding advisors today. We specialize in making sure we understand your unique business needs so we can personalize your funding experience.
This content is for educational or informational purposes only and should not be taken as legal or financial advice. The information in this content does not necessarily reflect the views of Coast Funding Services LLC or its partners.