Despite continuing economic uncertainty for consumers, there has never been a better time to think about growing your small business.
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The nature of the small business as a concept makes it well-suited to navigating the changing needs of consumers and of the industries within which they operate. The hardest part is getting a small business off the ground. Businesses often need a lot of seed capital to start on the right foot.
But where should you be looking for funding if your business is already up and running and you’re ready to start growing again?
Relying on Business Loans
Your first port of call for funding a new business venture should always be a conventional banking service or lender. Many banks have a business arm, under which they can grant long-term business loans to new concepts and ventures.
The terms of these loans can vary depending on the amount you wish to borrow and the length of time over which you would like to repay. However, they remain a solid option for any new company looking to invest heavily in growth. Wherever you go, you will need to demonstrate your long-term business plan and outline the things you intend to spend the money on. This information can help a bank come to a favorable decision.
Using Asset-Backed Lending for Growing Your Small Business
Major banking institutions are a good first port of call when you are looking at growing your business. However, they are not often the best option for emerging businesses with no prior track record. If you are a new small business and you have no prior credit history, you may find it easier to go down the route of asset-backed lending. Within this category there are various options for you to explore.
On the small scale, there are opportunities to use your assets to leverage flexible short-term loans like pawnbrokers. With these merchants you can utilize personal assets like jewelry and heirlooms to unlock their intrinsic value. Then you can use the cash for business growth in the short term.
For larger-scale funding, there are asset-backed lending solutions that enable you to put your business or personal property up as collateral for a larger sum.
Turning to Private Investors for Help with Growing Your Small Business
Lending from an institution, whether a bank or a private lender, can be a useful but sometimes risky way to facilitate new business growth. There are other ways you can generate funds for your growth strategy and wider network. For example, you could canvas for funding from private investors such as angel investors or even venture capitalists.
Angel investors are an ideal resource for starting a new business. They are often eager as well, to help with growing an already-established business. This is because they can provide significant early-stage capital and important business advice. Meanwhile, they can introduce you to other aspects of your industry and help you grow your brand.
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Gaining Support for Your Business Through Crowdfunding
Lastly, depending on your chosen industry and niche, there is a possibility for gaining early-stage investment from your customers themselves. Crowdfunding has become a key form of fundraising for new businesses, enabling them to turn retail interest into advance payments and frontload their profits as a result. This gives small businesses liquid capital to invest in growing their ventures while guaranteeing the production of a product or offering of a service.
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