What if you’re ready for business expansion, but your bank account is not? When a great opportunity comes your way, it’s frustrating to let it pass you by. Fortunately, there are a number of loan and credit options that can help you grow your business. Whether you want to add new locations, purchase commercial equipment or expand your business in other ways, there are funding options that can help. Consider the following financial products and lending sources to help you fund your company’s growth:
- Traditional bank loans: This includes credit unions and non-profit lending institutions, which can offer low rates and longer repayment terms for business loans and lines of credit. These funds are often used for working capital, equipment purchase, refinancing and real estate.
- Asset-based loans: In this option, you use your personal or business real estate, inventory or business tools and equipment as collateral to fund your growth. You’ll pay higher rates with shorter repayment terms.
- SBA loans: The Small Business Administration guarantees these loans and credit lines, often used for start-up funds, physical expansion (construction) and working capital you can draw upon as needed.
- Non-bank lenders: These include private lending institutions, marketplace lenders and mid-prime alternative lenders. These funding options offer short terms, typically up to a 5-year arrangement.
- Advance on receivables: These merchant cash advances are expensive and usually short term solutions. You’ll use your purchase orders or outstanding invoices as collateral. Use this type of funding only if borrowing costs are justified by the intended use of the funds.
When you need financial resources to expand and grow your company, it pays to explore all your options. Carefully compare rates and terms, and choose a loan option that best fits your business growth needs.
Ready to fund your business expansion? Contact Integrity Financial Capital today.