So, your dream is to expand your business, and we at Regents think that’s a wonderful dream, especially as America is built on small business growth.
But that doesn’t mean that it’s easy – and unsurprisingly, one of the biggest hurdles is often business funding for your expansion. From renting additional office or retail space to buying more inventory and materials, hiring new staff, everything that’s a part of expanding your business requires funding.
Which is why we wanted to put together a list of ways you can fund your business expansion – because, though banks and rich relatives are options, they aren’t the only options.
Business Funding Through Personal Financing
Sometimes, you can expand your business with your own money. Though this isn’t always feasible, especially depending on the size of your operation and costs, personal financing has no interest or fees, which makes it a popular choice.
If you have savings, are willing to refinance your home, or take out a second mortgage, then business funding through your own personal financing is an option. However, there is a significant risk, which you alone shoulder. If you are hoping to avoid large fees and interest, then personal financing (or our next option) is a smart choice.
Business Funding from the Public (Crowdfunding)
Untraditional? Yes. But does it work? Sometimes.
There are some great crowdfunding sites that are popular with inventors, entrepreneurs, and, of course, the public (your funders). Kickstarter and GoFundMe are probably the most popular, but others are popping up as well, like Indiegogo, RocketHub, Fundable and Fundly.
And these aren’t just for startups like many believe, you can use these sites to crowdfund your business expansion as well!
Business Funding Venture Capitalists
Venture capitalists have money to invest, and want to invest in growing businesses that could boom and net them big returns. This means they are willing to be your business funding for your expansion in exchange for a share of equity in your business.
Sometimes, these venture capitalists also want a voice in the decisions of your company – almost like a partner, so beware if this isn’t the direction you want to go.
Purchase Order Financing
Many factors can affect your business’s cash flow, from supply and demand, to market trends, to even the season. However, if you need to be able to buy inventory or materials for an order, but don’t have the current working capital, then purchase order financing might be the perfect funding for your business.
Purchase order financing essentially gives you an advance so your business can buy the materials it needs and you can pay it back after you’ve received payment for your products. The pitfall (besides fees) is that this form of business funding is used for manufacturing businesses, not services or retail, usually.
Business Funding Through Equipment Financing
An equipment financing line of credit provides businesses with the benefits of lease products, while preserving the low costs of funds and allowing you to space equipment acquisitions over time. This business funding can be committed for up to 12 months in advance with periodic take downs (which can be matched to the equipment’s expected utilization time).
However, just like purchasing order financing above, equipment financing has to be used for purchasing equipment for your business and the associated costs. Luckily, Regents offers 100% financing for associated costs, such as installation, design, software, delivery, training, and others.
Working Capital Loans & Your Business Funding
Working capital loans can help you pay for everyday business expenses like rent, payroll, and debt payments. Plus, Regents offers both unsecured and secured working capital loans.
With unsecured loans, how you use the cash is up to you; approval of the loan is not conditional upon the uses for the loan. For example, these short term loans can also be used to cover unexpected losses, increased expenses, new employees, relocation of an office – whatever you need it for!
The no-strings-attached is a huge perk for funding your business.
Other Alternative Lending Sources
There are other lenders who are willing to help fund your business, however, you’ll have to learn all the details about each; repayment terms and length, fees, APR, limits, and other rules and regulations that may change from company to company.
Alternative lending sources would be any lender that isn’t a bank or government program for businesses, so make sure you understand exactly what you are getting into, and how much and when you’ll pay back the business funds.
Contact Regents to Learn About Our Business Funding for You!
We are here for all of your business funding needs, whether that be a working capital loan, equipment financing, or something else entirely, Regents is here to help your dreams of expanding and growing your business come true!
Contact us today to learn more and get the funding you need, right now.