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, which 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, 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 rates. 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, this, 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, you’re 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 annual 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. Approval will be given to a predetermined amount that you can use according to your needs. To qualify for a business line of credit, businesses need to bring in at least $100,000 in annual revenue and should have a minimum credit score of 600. Find out more about 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 we’re here to help you through it. To find out more and see what types of financing options best suit your business expansion needs, give us a call at (646)-440-4100 or send an email to .
