If you’re wanting to find out how to finance your business expansion, you’ve come to the right place. In the following article we’ll go through the various sources of finance specifically for businesses looking to expand.
There are a number of ways you can fund a business expansion. The right one for your business depends largely on your expansion plan. For example, if you’re simply looking to expand your product range, short and medium term finance could be a good option. However, if you’re looking for a significant amount of business finance to fund a long term expansion, medium to long-term business finance could be the best choice to ensure your cash-flow is managed well.
Below is just a handful of the most popular ways businesses source finance for their expansions and future business plans.
Once of the most popular ways businesses fund an expansion is through a business loan. This is largely down to their flexibility, loan amounts, repayment period and speed when it comes to securing the finance. Bank and business loan lenders can lend small and large amounts and can offer competitive interest rates.
Online business loans can be particularly useful if you’re looking to secure finance quickly. For example, here at Esme, you can apply for a business loan in just 10 minutes, and if approved, we’ll aim to have the money in your account within an hour.
When you’re looking to finance an expansion, the first place you’ll usually look for finance is within your own business. Reinvesting profit into your business can be a great way to improve customer care and your general offering as a business.
However, managing your business’ finances is crucial for an expansion to ensure you’re not leaving your business with a lack of vital capital. For example, if you’re looking to buy a new range of products that requires you to buy them in bulk, you’ll have to weigh up whether the stock or cash is more beneficial to your business at that time.
If your business falls into a particular sector or region, you may be entitled to a business grant. A business grant means you get the finances to invest in your business without having to pay any of it back.
Grants could be a great option for many businesses, but it can be a lengthy process that requires a lot of paperwork. If you want to apply for a grant, it’s a good idea to get the ball rolling before any finances are needed for your expansion.
Each grant has its own criteria and application process so it’s important that you do your research beforehand. You can find the full list of grant providers, based on your business’ location, size and sector on the government website.
There are many other sources of finance for business expansions, including crowdfunding and even selling shares of your business to potential investors. You can find out about the various other sources of business finance and types of business loans available by heading over to our blog.