- Common Small Business Challenges and How to Solve Them - June 23, 2022
- The Best Investments to Improve Your Sales Team Strategy - May 26, 2022
- The Best Business Loans to Help with Payroll - May 12, 2022
Relying on organic growth to scale your business can be tricky and unpredictable, making it difficult to plan for the future. Rather than relying on outside factors, take control of your business, and learn how to grow your small business with the help of business financing. You’ll be surprised at the variety of ways you can put additional working capital to work in order to help scale your business.
Here’s how you can grow your business by starting with business financing:
For many small business owners, their passion for their product or service is what fuels their success. But unlike bigger corporations and companies, working capital isn’t always readily available — even with a steady stream of revenue flowing in. That’s because most entrepreneurs and small business owners wear many of the hats that other larger companies often hire multiple employees to cover. However, accessing working capital has become easier than ever for qualified small business owners, and they might not even know it.
That’s why we’ve put together a comprehensive overview of how to grow your small business with the help of different types of business financing, what they can be used for and where to find them — all in one spot.
Start funding your growth and expansion today with the help of quick and convenient working capital!
Bridge the gap with working capital
Today’s small business owners have a lot on their plate. From providing their customer base with excellent products and services to taking care of bookkeeping and employee management, entrepreneurs tend to take on more responsibility with the notion that they’ll grow and expand. But sometimes, small business owners need a little help when it comes to working capital.
If you’re a small business owner looking to hire employees, purchase products to supply your inventory, upgrade critical infrastructure needs, expand your technology offerings or get an advance on being able to cash out your own paycheck, you’re in the right place.
Here you’ll discover the possibilities for growing your small business through a few options that are readily available, like:
- Term loans
- Lines of credit
- Business credit card
- Merchant cash advance
- Small Business Administration (SBA) loan
- Invoice factoring
While any of these business financing options can help grow or expand on your company’s current needs, below you’ll be able to explore the differences between each funding option and where they make sense to fit into your company’s specific development goals. Here’s how business loans can help scale your business:
Loans for digital marketing
Often overlooked, digital marketing offers a new way to supply your audience with information wherever they take their connected devices. And while digital marketing can play an integral role in reaching new people, there are often upfront costs associated with scaling your current business offerings onto a digital level. They can be worth your while; however, when you have a new and improved website built, are marketing via paid social media ads and are reaching new heights through banner ads strategically placed on your community’s most viewed sites? All of these can generate new revenue through e-commerce and simple visits to your storefront or office, helping build your business’ digital footprint like never before.
If you’re worried about the costs associated with digital marketing, there are a few financing options that might make sense for your business, such as:
- Term loans: A term loan allows you to secure working capital, then pay it off in set payment amounts and dates for added flexibility. Typically, a term loan has lower rates than other financing options, but it may require more upfront verification like collateral and a positive profit trend to be able to qualify.
- A line of credit: A line of credit provides small business owners with an easy way to access capital on a need-be basis. Line of credit funding is available to dip into whenever you need it without providing the small business owner with a large portion up front.
While both financing options might seem unobtainable to most small business owners, there are actually more funders outside of traditional ones (like banks or financial institutions) that may provide you and your business with working capital that can be used to help scale your business offerings.
Loans to purchase B2B platforms for lead generation
While digital marketing allows you to tap into the ever-connected world that today’s customer lives in, there are even more options for small business owners like you who are learning how to grow your small business. The opportunity for growth is endless when it comes to scaling your business-to-business (B2B) offerings.
One available resource for making more connections to other businesses is by purchasing B2B platforms that allow you to create lead generation online. These platforms give you the upper hand in creating new partnerships with other businesses that are seeking your products or services and can allow you to create and foster your own business’ revenue like never before.
If you’re looking to get started with B2B lead generation, you have financing options available to you, including:
- Term loans
- Business credit cards: A business credit card allows you to have the ease of transactional financing wherever you and your business shop. Just be leery of high interest rates or low spending limits, where you might find more options in more conventional funding ways.
Financing for new sales hires
As a small business owner, your passion is never outmatched by your ability to help drive new sales. In order to thrive in the current market, you must be flexible with your customer base and truly understand what they’re looking for while adapting to find new ways to offer your products or services to them.
Hiring employees to help generate sales can take precedence in your next growth and expansion opportunities. There are new ways of finding the right talent, providing them with a living wage and setting your business up for success through financing options such as:
- Merchant cash advance: A merchant cash advance (MCA) allows small business owners to leverage future credit card receivables to acquire capital quickly and conveniently. With varied cash advance amounts and flexible payment options, you can be funded in as little as one business day.
- SBA loan: The Small Business Administration is a government-funded entity that provides government-backed loans through partners who can distribute funds when capital is needed. These loans have stringent policies on who qualifies and typically are used in times of economic distress across the entire market.
Loans for location expansion
Have you outgrown your current space and need to move? Or are you looking to add on to your current storefront and need working capital to help?
When you’re looking to grow and expand your business, it all starts with the right space to make it happen.
There are options out there to help fund your goals in a quick and convenient fashion, particularly:
- An asset-based loan: Asset-based loans allow business to access working capital through a loan secured by the assets that a business has. This means that for this type of loan, the lender is collateralized with an asset (or multiple assets) that the small business borrower has. This can lead to lower rates but will need more valuable and higher quantities of collateral in order to generate larger loan amounts.
Financing for purchasing inventory
Trying to keep your supply up with the needs of your business demands can be daunting. When you’re looking to secure the next round of goods and supplies in order to scale your business, a lot of working capital can be needed.
As a small business owner, it can be difficult to secure working capital in a turnaround that satisfies your supplier. But there’s funding available that uses your current sales and invoices in order to provide you with access to working capital based on your outstanding invoices:
- Invoice factoring: Invoice factoring is much like an MCA, except it allows you to leverage your incoming invoices to receive a cash advance. And much like an MCA, it’s quick, convenient and offers flexible payment options to offer as much mobility as your business needs.
Key takeaway: Business financing is your one-stop resource for growing your small business
Small business owners help foster a community of growth. Whether it’s the impact they make in their cities or the employees they hire, there’s a wealth of benefits that each one instills when they set up shop in your area.
And as a small business owner, you can learn how to grow your small business and expand as needed with help from funders who provide access to business financing through new options that most traditional funders don’t offer — because we’re constantly evolving the fluidity of the financial landscape just like the market does.
Knowing what’s available to help grow your business is vital in order to continue success in your business endeavors, so if you have any questions regarding your business financing options, reach out to a business advisor at Rapid Finance today in order to get started on securing working capital for you and your business’ needs.