Where Can I Find Business Expansion Funding?
Growing your business should be the most exciting time of your small business. But we know that not every business can afford to pay for business opportunities outright. In this article we will talk about the various options for business expansion funding out there. With all of the options available, picking the one that is right for your business’s needs is the most important thing to keep in mind.
Where To Find Business Expansion Funding
Financial institutions offer you the best opportunities for low-interest rate business expansion funding. However, they come with their drawbacks. Bank financing is extremely hard to acquire if you do not meet several requirements. It is also known to be an extremely long process to receive the funds if you are approved. The requirements include:
- Good Credit
- If the business owner has poor credit or the business’ credit is not good, then a bank will often raise the red flag. They are looking for borrowers who they know are going to pay them back.
- Collateral To Put Up Against The Business
- Often times owners are not always willing to put up personal assets for growing their business due to the risk.
- The other side of that is that putting up your business’ assets while you are trying to expand is risky too.
- Business Plan
- If you are thinking about expanding your business and are looking for financing, you probably have a business plan. But how is it written? Does it outline exactly how you will utilize the funding to grow your business? Does it show how you plan to continue to grow over the next 3-5 years? A bank is going to look for those details.
- Business History
- If you are going to a bank for funding, they are going to check to make sure your business is operating efficiently. Typically they want to see that you have been operating for at least 2 years. Startups tend to struggle when it comes to receiving traditional financing.
Friends and Family
If you are looking to grow your business, your family can be a great source of funding. It helps if they believe in your business model as well. This is an option that is used by a lot of startup businesses that are looking for business expansion funding. However, there are risks to friends and family financing that include not being able to pay your lenders back.
Merchant Cash Advance
A merchant cash advance is short-term funding to help a business grow. Whether they are expanding or looking to pay off debt. This option can often cost more than a traditional loan because of the fees. However, at eBusiness, our merchant cash advance offers over a 90% approval rate. Compare that to a bank loan which has approximately a 20% acceptance rate. If you are a new business that is looking for business expansion funding, a merchant cash advance can be that quick option for you.
At eBusiness, we make getting approved for a merchant cash advance simple, quick and painless! Unlike a bank loan, you are not going to have to jump through hoops for us. And after you are approved, we get you the funds into your bank account in just three days! Following the advance, we take a cut from your business’ credit card sales each day until the advance has been paid off. Seasonal businesses typically see this as a huge benefit. During the times when your business is not driving as many sales, the amount you pay back is much lower since it is a fixed percentage.
So if you are considering the various options for business expansion funding, contact us today. We can discuss the various options and find one that is right for your business. We want to see your business succeed and continue to expand!