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Take Your Small Business to the Next Level Using Business Financing

  • June 18, 2019
  • By Aidan Dwyer

Expanding a business is a huge milestone in any entrepreneur’s career. You have made it far enough to take your business to the next level. This is an exciting time for you and your business. Here you have to make a lot of important decisions. These may include the direction you want to take your business in; whether or not you want to bring on new staff, and what new customers you are going to target.

However, the most important decision that you will make while expanding your business is how you are going to finance. When it comes to expanding, the decisions you make about funding will affect all aspects of your business. Your financial decisions will impact your companies main goals regarding expansion. Including the urge to have fast and steady growth, while maintaining your current customer relationships. We have a list of the best financing options for you to consider when you start a business expansion.

SBA Loans

When looking to finance your expansion, an SBA loan is one of your best options. SBA loans have longer terms and lower rate loans. Small Business Association secures them that uses federal money to guarantee a portion of the loans. This allows banks to give a lower rate to small businesses. SBA loans are perfect for expansion because of their low rates. Yet they are generally harder to obtain compared to other lending options. Government backs the SBA loans. Which, in turn, makes the criteria needed to qualify much more rigid.  

To start, you need to be in business for at least 3 years with a minimum credit score of 650. The application process is also lengthy and SBA loans can take up to a month to release funds. After qualifying for an SBA loan if you find it best, we recommend that you apply as early as possible! We can help you make it as quick and easy as possible. Apply here for Quick SBA Loans 

Invoice Financing

Is your company looking to expand but because of your business structure, your left with huge gaps in cash flow? Many businesses struggle with cash flow which can hurt the expansion of your businesses. Invoice financing is a unique financing option that allows a business to leverage outstanding invoices against a loan. This means that you can use unpaid or late invoices to secure funding for your business expansion immediately. To qualify for quick Invoice financing, your business needs to bring in at least $250,000 in revenue. You can use invoice financing as a short term solution to continue growing your business during these cash flow gaps.

Business Line of Credit

If you are looking to expand but don’t necessarily know what your expenses are going to be. Then you may want to look into a business line of credit. A business line of credit is a flexible form of financing that works similarly to a credit card. An Approval will be given to a predetermined amount. You can use it as you need. To qualify for a business line of credit, businesses need to bring in at least $100,000 in annual revenue. Also, they should have a minimum credit score of 600. All unexpected expenses that arise during business expansion will be covered by a business line of credit.

Why REIL?

Expanding your business is an important decision and can be a difficult process. Yet finding the right financing to expand your business is imperative. At REIL Capital, we understand the process of expanding your business can be challenging and are here to help you through it.  To find out more and see what types of loans may best suit your business expansion needs, contact a representative.

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