How to actually use a £50k business loan to grow your business

You’ve done the hard work – proven your business case, got the green light, and secured £50,000 in funding. Now comes the fun part: putting it to work.

A business loan isn’t just a cash injection, it’s a strategic tool. Used well, it can unlock growth, improve efficiency, and set you up for long-term success. The key is knowing where that money will make the biggest impact. 

Here are some of the ways UK SMEs put their funding to work.

Hire the people who’ll move the needle

Your business is only as strong as your team. If you’re stretched thin or missing key skills, hiring could be the best investment to make. £50k can cover salaries, recruitment costs, and onboarding for one or two quality hires, or a handful of part-timers if that’s what your business needs. 

According the Future of Jobs Survey 2025, skill gaps are far and away the biggest barrier to business transformation, with almost two-thirds (63%) of employers deeming this a major issue.

Upgrade your kit (or finally get the tech you need)

Outdated equipment slows you down. Whether it’s machinery, vehicles, or tech, investing in better tools can boost productivity, cut costs, and improve the quality of what you deliver. Think new laptops for your team, upgraded software subscriptions, a commercial oven if you’re in hospitality, or a delivery van if you’re in logistics. 

The initial outlay might sting, but the long-term payoff — faster turnaround, fewer breakdowns, happier customers — tends to be worth the upfront cost.

Expand your premises (or get one)

Finally outgrown your garage? Sick of working from your kitchen table? A loan can help you level up your workspace, whether that’s renting a proper office, opening a second location, or buying a unit outright. More space means more capacity. And more capacity can mean more revenue. Just make sure the numbers stack up before you put your signature on the lease.

Take your marketing to the next level

You can have the best product in the world, but if no one knows about it, you’re going to struggle. £50,000 can fund a serious marketing push, be it via digital ads, SEO, content creation, or by committing to an entire brand refresh. Just keep your eye on how much you’re spending, because it can add it quickly.

Stock up

If you’re in retail, eCommerce, or wholesale, stock is everything. But buying inventory upfront can drain your cash flow fast, especially if you’re scaling.

A £50k loan can give you the chance to bulk buy, negotiate better supplier rates, and keep shelves stocked without the constant juggling act. You could even invest in inventory management software that predicts when you’ll run out of stock, so you're only ordering what you need, when you need it.

Just don’t go overboard. Unsold stock isn’t growth – it’s dead money gathering dust.

Tidy up existing debt

Sometimes the smartest move is consolidating expensive debt. Boring? Yes. Strategic? Also yes. If you’re in the process of paying off multiple high-interest loans or credit cards, refinancing with a single, lower-rate loan could save you cash and simplify your finances.

It might not feel like growth on day one, but getting your financial house in order is the foundation everything else will be built on going forward.

The bottom line

£50,000 is serious money, but only if you spend it with purpose. Think about where your business has the most potential to grow, then direct your funding there. Whether it’s people, equipment, space, or visibility, make sure every pound is working as hard as you are.