Posted on: 6 January 2017
If you have been in business for a while, you may find yourself thinking about expanding and growing your business. This growth could be moving into a new industry, a new facet or niche of your current industry, or into a second location. No matter what type of expansion you have in mind for your business, one of the biggest considerations to worry about is financing that expansion. In order to make your dream of an expansion a reality, get to know some of the ways that you may be able to generate the capital you need for your business expansion.
A Bank Loan or Line of Credit
One of the most traditional and common ways that you can get the capital you need to expand your business is to get a bank loan or a line of credit to give you the financing that you need. If you already have a standing relationship with a bank for your business, such as business checking and savings accounts or even credit cards or previous lines of credit, then a bank loan or line of credit through that bank would be an excellent option for your expansion needs.
A bank that already known your business well and understands your situation may be more likely to extend you a new line of credit. Of course, you will still need to provide whatever bank you contact with a business plan regarding your expansion, including profit projections that the addition to your business will bring in. These projections will help you to show the bank that you will be able to pay back your loan or your line of credit as agreed upon.
Business Cash Advance Programs
Sometimes, your business expansion may be deemed too risky by a bank, or your business may not have enough of an established credit relationship with a financial institution to get enough credit for your planned expansion. In these cases, you may want to look into business cash advance programs.
Business cash advance programs are similar to personal cash advance programs in that they give you fast cash that you need now. This immediate influx of capital can help you to act quickly if you need to grab up a desirable location or want to make a swift move in other areas of your business.
These programs do differ in some ways, though. For example, business cash advances or merchant cash advances often have repayment plans that are not fixed payments. Instead, the exchange is for a portion of future credit card sales or something along similar lines so that the company can recoup the credit that they extended you without causing major issues with running your business.
With these options in mind, you can get the financing and the capital that you need in order to expand your business and make your company more successful.Share