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

Banks

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.

Getting Started

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!

What Is Business Expansion Financing?

The old saying, you have to spend money to make money is never more true than when you are starting a business. As an entrepreneur who has started their own business, you pride yourself on taking care of that business. You want to make sure you are doing what is best for the business, your employees, and the management team. As you start to think about expanding the concept can be scary and expensive. But there are business expansion financing options available to you. They were created to help grow your business. After all, growing your business was probably one of your goals since the start.

Business expansion financing gives a business owner the ability to do things they may have been unable to do. These include buy additional office space, hire more staff, increase inventory, or acquire another small business. You can even expand your product offerings or buy a new office or factory.

We all know that money does not grow on trees and business expansion financing is not going to just be handed to you. There are a lot of factors that go into you deciding the type of financing you need. For example, you want to buy a new office building outright but know that by doing so you will be short on cash for your payroll. There are business expansion financing options for each business case. These options allow you to grow your business while still making sure you have the proper cash flow to keep the lights on.

So what types of business expansion financing are available?

Friends and Family

This can be one of the most stable sources of funding because they are going to have very few requirements. That is if they believe in you and this is the first time you are asking for money. If you are a reliable borrower, friends and family are often happy to loan to people they know. However, if you are known for going from one family member to the next asking for cash and never paying them back, at some point the answer will be no.

Banks Loans

A bank loan is a great low-interest rate option if you can be approved. Because of the new regulatory standards, a bank loan can be hard to come by. Only 20% of small business applicants are approved for a traditional bank loan. Your business must be in a perfect state of affairs to receive the funding from a traditional lender.

Alternative Lenders

The financial services industry is constantly changing. Long gone are the days that you only have one option to get funding from. The “FinTech” market as we call it is filled with financial services startups trying to make a name themselves. These startups are offering custom services to individuals and small businesses.

Alternative lenders can be a great way to acquire business expansion financing and should be considered. One alternative funding option is a merchant cash advance. This a great option for a business that is looking to take advantage of an opportunity to expand quickly. The application process is simple and can get you the funding you need in as little as three days. The requirements are also simple. We look for businesses that have been around for at least six months. As well as, businesses that generate over $10,000 a month in revenue. Over 90% of those who meet our minimum requirements are approved for a merchant cash advance.

Instead of a traditional fixed monthly payment, a merchant cash advance will take a daily fixed percentage of credit card sales. This will happen until the amount advanced has been paid off. The nice part about this process is it is automated so a business does not have to worry about receiving a late fee.

All of these options should be weighed against a business’ operational model. Because every business is different you have to find the right one for you. Your business is something to be proud of. And this decision can determine the financial future of your company.

Get Started

If you have questions about what the right business expansion financing option could be right for you, give us a call. Our goal is to see your business succeed!