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Funds for refinancing debt, working capital, and more

We help small businesses like yours access funds quickly with bank term loans from our trusted network.

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Only takes 5 minutes and doesn't impact your credit score1

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Bank Term Loan - Use of Funds

A Bank Term loan from a bank in the SmartBiz Loans network can be used in a variety of ways to build your business and save money. The financial professionals at SmartBiz Loans are available to answer any questions you may have regarding acceptable uses of loan proceeds. The following are popular ways our customers use funds.

Working capital

Working capital is used to cover a company's short-term expenses like inventory, equipment, marketing, payroll, hiring, and payments on short-term debt. The formula to calculate working capital is: Deduct current liabilities (primarily short term loans due within a year and accounts payable) from current assets (cash on-hand and things that can be easily converted into cash, like inventory and accounts receivable). If your current assets don't exceed your current liabilities, a bank term loan can get you back on track to help meet financial obligations and cover day-to-day business expenses.

Debt refinancing

Many entrepreneurs rely on expensive debt when launching or in the early stages of their business. If those debt obligations are cutting into cash flow, refinancing can help you save big. For example, a marketing consulting company in San Francisco was making excessive monthly loan payments. The owner took out a $100,000 Bank Term loan with better terms and lower rates from a bank in the SmartBiz network. He was able to refinance three high cost loans, saving the business approximately $7,000 monthly.

Hiring employees

A bank term loan can cover costs related to hiring like recruitment, training, salary, and benefits. An automotive business in North Carolina needed additional workers to keep up with service demand. The business owner allocated $15,000 from a bank term loan to hire and train 2 new technicians. With the additional staffing, he'll be able to take on more jobs, increasing revenue.

Purchase equipment

Business equipment includes tangible property (other than land or buildings) used for operations. Examples include computers, machines, tools, and vehicles. A frozen food wholesaler allocated $60,000 from a Bank Term loan to replace outdated refrigerated equipment. The business now has reliable cold storage to handle current and future inventory.


A bank term loan can finance marketing efforts to build your brand, attract customers, and increase sales. Consider a Bank Term loan from a bank in the SmartBiz network to cover things like advertising, trade show costs, promotional materials, and more. For example, an established beauty salon is using $10,000 from a bank term loan to revamp their website, invest in Google pay per click ads, and launch social media campaigns.


If you need to increase existing inventory or expand your product line, funds from a bank term loan can cover the costs. The owner of a cafe in California is using loan proceeds to purchase additional coffee and tea products. They'll save big by buying goods in bulk.


If you need funds for remodeling, bathroom updates, or other space improvements, consider a Bank Term loan from a bank in the SmartBiz Loans network. A restaurant located in Atlanta came to SmartBiz to solve a problem. Demand for their food was high, but their available dining space was too small. The business owner took out a Bank Term loan to expand into a space next door. The funds are being used to hire a contractor/engineer along with a designer to handle aesthetics. The projected additional revenue per day due to the larger space is $1,000- $1,500 per day.

Partner buyouts

A buyout is where one party purchases shares of a business to acquire a controlling interest in that company. Funds from a Bank Term loan from a bank in the SmartBiz network can finance this type of transaction.

Business acquisitions

Funds from a bank in the SmartBiz network can be used to purchase an additional business. However, funds cannot be used for a new business purchase. If you have questions, please ask your SmartBiz Loans relationship manager for specifics.

Frequently asked questions

What's the difference between a SBA loan and a bank term loan?
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An SBA loan, known as the “gold standard” in small business lending, is partially guaranteed by the government. This reduces the risk to banks so they are more willing to make a small business loan. SBA loans typically have lower interest rates and longer repayment terms. If you're not eligible for an SBA loan or need funds more quickly, a bank term loan can be the right solution. These loans are often processed faster and have shorter repayment terms.

How much can I borrow?
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SBA 7(a) Working Capital and Debt Consolidation loans from banks in the SmartBiz lending network are available from $30,000 to $350,000. SBA 7(a) Commercial Real Estate Loans are available from $500,000 to $5 million. Bank term loans have $30,000 to $350,00 loan amounts.

Will checking my rates affect my credit score?
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  • No. In assisting you with your loan application, we initially conduct a soft credit pull that will not impact your credit score. However, after we refer you to the lender, the lender will request your full credit report from one or more consumer reporting agencies. This is considered a hard credit pull and can affect your score. This only happens after the lender receives your application and conducts their application review process.

How quickly will I receive my funds?
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Once your application is approved by the lender, funds can be deposited into your bank account in as fast as 7 days. The quicker you complete your application, the faster the process can proceed.

Are there fees or other costs involved?
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SmartBiz Loans helps you get to a “yes” by preparing and presenting your unique business history to the multiple banks in our lending network. For its services, SmartBiz Loans charges referral and packaging fees. Bank closing fees and additional third-party report charges may also apply. For complete and transparent fee and cost information for all of our products, see our complete FAQs. For questions, please call us at (888) 555-1234.

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1. We conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, the lenders with whom we work will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and happens after your application is in the funding process and matched with a lender who is likely to fund your loan

2. Numbers based on internal reporting and metrics

3. Based on FY2020 SBA loans data released by the SBA for SBA 7(a) loans under $350,000

4. This calculator is a tool meant to help you estimate monthly payment amounts based on the information you enter. The monthly payment provided is an estimate meant for illustrative purposes only, loan sizes, interest rates, and loan terms vary and are determined by the applicant's credit profile.