Business loans are taken out for several reasons. A company may want to secure financing to maintain business operations, invest in equipment, start a new branch, or any number of other motivations. The biggest advantage of taking out a business loan during tough economic times is that companies can use it to increase their working capital. While companies that are looking to expand often already have enough money to become larger, taking out a loan allows them to maintain their operating cash flow, making it easier for them to cover any unexpected expenses. Thus, they are able to make payments on their loan by using the new income gained from expanding their business.