7 Industries That Use The Most Credit To Finance Small Business Operations

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    7 Industries That Use The Most Credit To Finance Small Business Operations

    What industry uses the most credit to finance their small business?

    To help you explore what industries use the most credit to finance their small businesses, we asked business leaders and financing experts this question for their thoughts. From renewable energy to construction, there are several industries that use a heavy amount of credit to finance their small businesses.

    Here are seven industries that use a heavy amount of credit to finance their small businesses:

    • Renewable Energy
    • Food & Beverage Brands
    • Rental Companies
    • Physicians And Doctors Office
    • Construction
    • Apps
    • Restaurants

    Renewable Energy

    There are many industries that rely on loans to grow their businesses. Within our financing company, we focus on and specialize in helping those in the renewable energy space. This is an industry that is growing rapidly but is, most importantly, positively impacting the environment. This is an initiative that is very important to my company, and we are excited to help these entrepreneurs achieve their missions.

    Kimberly Kriewald, AVANA Capital

    Food & Beverage Brands

    We’ve worked with a lot of small businesses, but the industry where we’ve seen the most credit leveraged is with food and beverage brands. It’s not cheap to finance the equipment used to manufacture consumer products. And, it requires a substantial investment in marketing and brand building to have a food and beverage brand compete. There’s lots of investment in consumer brands, and when you see a brand succeeding, it’s most often well funded and highly leveraged.

    Brett Farmiloe
    Brett FarmiloeCEO, Featured

    Rental Companies

    Typically rental companies use the most credit to finance their small businesses. In order for rental companies to grow, they need to continuously replace older equipment with newer equipment. Customers also require updated equipment for their specific needs, so revamping their rental inventory is always top of mind. Rental companies use credit to update their rental fleet and sell the old equipment before the equipment is too old and maintenance becomes an issue.

    Carey Wilbur
    Carey WilburPartner, Charter Capital

    Physicians And Doctors Office

    Some businesses qualify for more funding than others due to the nature of the business and what industry they are in. Lenders consider businesses within some industries to be less risky and more likely to repay their debts due to their potential for ROI and profitability, among other factors. According to Fundera’s State of Small Business Lending Report 2020, Physicians/Doctors Office was one of the industries that used the most credit to finance their business. Some of the reasons behind this were equipment and startup costs, but profitability long terms allow business in this industry to qualify for large, long-term loans.

    Grant Ferguson
    Grant FergusonCEO, Unsecured Funding Source


    The construction industry uses the most credit, with the majority of loans heading out from banks and institutions to finance this sector in particular. This is because businesses in the construction and renovation industry generally need funds to cover the cost of their equipment—and this particular industry goes through equipment like a bear stocking up for hibernation. Equipment loans help construction businesses to purchase large pieces of machinery such as excavators, bulldozers, and cranes—which are undoubtedly expensive. Plus, with the need for new offices and housing continually increasing, it’s no surprise that the industry will continue to need the most credit in the future.

    Caroline Lee, CocoSign


    Monetizing an app that requires a certain number of users to work efficiently can take a lot of investment. A case in point here is Uber at its early stages of growth. Without a sufficient number of drivers, the clients wouldn’t use it and the other way around. Promoting an application that relies on the network effect requires high capital investment at the pre-revenue stage.

    Michael Sena
    Michael SenaCEO & Lead Analytics Consultant, Senacea Ltd.


    The restaurant industry is cash intensive and is known for using a lot of credit to finance operations. For example, setting up a restaurant may require pre-paying a lease, building out the design, purchasing specialty equipment, investing in marketing and branding, and hiring and training staff. The credit may come from banks, investors, or otherwise to meet these obligations early on.

    Melissa Kelly
    Melissa KellyCEO, Virtual Team Building