Financing Options For a Growing Business
The financing options for a growing business are many. There are traditional loans, like SBA loans, personal credit cards and even crowdfunding platforms. There are also less traditional methods like partnering with lenders and applying for grants, tax credits, and rebates.
Small Business Administration loans
The Small Business Administration (SBA) offers loans to businesses that have a high probability of success. These loans can be used for many different purposes, including:
- Starting or expanding your business
- Purchasing machinery, equipment and real estate
- Refinancing debt with lower interest rates and longer repayment terms than conventional bank loans
Personal credit cards
If you decide to use a personal credit card to finance your business, be sure that you are clear on what’s a business expense and what’s not. You should also consider the interest rate of the card and how much it will cost you in total over time.
In addition, make sure that any payments made by your company are paid off before they are due so as not to incur late fees or other penalties that could hurt cash flow further down the road.
Partnering with a lender
Partnering with a lender that understands your industry and can help you find the right loan is key for growing your business. A good lender will also be able to offer guidance on how to grow your business, whether it’s by accepting new customers or expanding into new markets.
Crowdfunding platforms are a good way to raise money for a … More >>>