How to use a business loan to grow your sole trade business

30 Jun 2024

Sometimes achieving growth requires additional funding. Here’s how sole traders can use business loans to grow.

Ltd or sole trader

Ever had to turn down a contract because you didn’t have capacity? Or maybe you missed out on a new trending market because you didn’t have the resources to fill it.

Enter: business loans.

Business loans are here to support sole trader businesses in achieving their growth goals. Here’s how.

sole trader

Boost marketing efforts  

There’s no way around it: marketing costs money – the current global ad spend is currently at approximately $602 billion. Publishing content that resonates, reaching the right audience with ads, or producing physical take-home visuals can become a strain on working capital. 

A business loan can help you by providing the funds you need to produce and distribute targeted marketing campaigns. Here are some things you can use a business loan on as a sole trader:

  • Leaflet and flyer production

  • Content consulting

  • Social media advertising

  • Pay-per-click marketing

  • Outreach business development teams

  • Improving your website presence

Expand operations

Expanding operations can mean different things to different people. It might mean designing and producing a new product line, or it could mean opening an international office – it could even mean improving the quality of your stock so you can attract a new market.

Whatever expanding operations means to you, business loans are here to help.

Purchase new inventory

Experiencing growing demand? On one hand, having more customers is great for business, but on the other, the increase in sales can equal a depleted store room. If you need more inventory to meet growing demand, a business loan can help. It can ensure you’re able to meet the expectations of your customers and avoid missing out on any potential sales due to a lack of stock.

Invest in training

Expanding your skills can enable you to grow in a new vertical. But training costs money and you usually only benefit from that training once it’s over and you can go out to market with your new services. Fortunately, some business loans enable you to get training today but pay for it tomorrow. If you take on any help you can also use a business loan to invest in employee training.

Hire staff

Speaking of employees, new staff can increase capacity, enhancing your growth capabilities. Thankfully, business loans can help you meet payroll obligations as you grow.

Improve equipment

Upgraded equipment can mean improved productivity and the ability to deliver more. More services and more products can hopefully lead to more customers. Not just that, you can also purchase specialist equipment to enable you to deliver new services. There are a range of equipment loans available to help you grow, including hire purchase options and operating leases.

Refurbish property 

Bayes Business School just predicted 40% of all current commercial property loans in the UK will need to be repaid or refinanced in the coming year and a half. If you’re one of the 40%, a renegotiation could be an opportunity to update your premises. 

If you run a brick and mortar store or business, you might find updating your premises can help facilitate growth. Business loans like refurbishment loans and bridging loans are here to help you improve your property and gain more foot traffic.

Find a sole trader loan with Funding Options by Tide

We help match sole traders to our network of over 120+ lenders, enabling them to borrow between £1000 and £20M. Click the link below to find a suitable sole trader loan.

Find a sole trader loan


Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.

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