A small business loan is a smart option for several reasons. For one, it helps build your credit score (as long as you pay on time), which will eventually qualify you for more comprehensive loans in the future. Aside from that, here are the top advantages of a small business loan: Give you the capital to invest in growth opportunities like expansion, business acquisition, renovations, partnerships, etc.  Act as a cash cushion during the slow season or emergencies You won’t have to worry about falling short in cash and compromising your day-to-day business operations. You can refinance high-interest-rate loans.