Business loans are typically essential at the outset for new businesses. Very few people can cover startup costs out-of-pocket, and loans offer a way to get a business going with little startup cash.

But loans may be employed in myriad situations over the course of a business’ lifetime. Indeed, taking on a little more debt down the road can actually be essential to building a long-term, sustainable enterprise. Below are three situations in which a business loan may be essential for your company.

1. Equipment Financing

Businesses across numerous industries — healthcare, food services, construction, transportation, and more — require consistent use of heavy equipment for daily operations. For such businesses, machinery may be among their most substantial costs, and determining strategies for sustainable equipment financing is essential.

Loans can be vital in the equipment financing process (provided you determine a purchase is preferable to an equipment rental, often the case if you have a long-term need for a piece of machinery, and have some flexibility at the outset about a timeline for purchase). A loan can make purchasing even a highly costly piece of equipment — like an excavator, for a construction company — feasible, by offering funds for a down payment and helping you meet other financial obligations down the road.

2. Business Expansion

A business expansion is another situation in which an established company may need to take on more debt. Expansion can mean many things, from the launch of a better website, to rolling out a new product or service, to a major storefront expansion. In any situation involving substantial out-of-pocket expenses, an expansion loan or other type of relevant loan may be quite helpful in allowing your enterprise to grow.

3. Purchasing Real Estate

Finally, countless businesses take on substantial debt to purchase real estate. A real estate purchase can be quite pricey for a small business, but offers a number of potential benefits: more control over your company’s physical location, the potential to collect rents from other businesses, long-term property value appreciation, and more.

SBA loans are sometimes worth considering if you’re looking to purchase real estate for your business. CDC/504 loans in particular are designed to help businesses purchase owner-occupied property.

In short, there are quite a few scenarios in which a business loan can be an invaluable tool in helping grow your business and generate greater revenue over time. Working with an experienced financial advisor can help suggest the best loans for your company, and help you enact a sustainable long-term funding strategy.