Starting up a business can be an arduous process, but when a company reaches the growth stage, it provokes excitement and anticipation. However, sustainable growth requires the capital to bring in more employees, buy inventory, acquire state-of-the-art equipment, and work longer hours. Here are some of the main means of acquiring growth financing.

Utilize a Credit Card

Obtaining and using a business credit card is a quick way to obtain growth financing. The paperwork is minimal, and responsible use can help to improve your credit score. Be careful to avoid getting into too much debt, though, which would negatively impact your credit history.

Apply for a Line of Credit

A business line of credit is similar to a credit card. You have access to capital up to a predetermined limit, and you are only charged interest on the amounts that you withdraw. When you pay back what you have borrowed, you have access to the same amount again.

Try for a Bank Loan

A loan from a traditional bank is generally less expensive than other funding options. However, you need a high credit score, and the application process can be time-consuming and difficult. A loan backed by the U.S. Small Business Administration usually has good terms, but these are also hard to obtain, and the approval process is tediously slow.

Get a Cash Advance

If you need growth financing right away, a merchant cash advance is one of your fastest options. This method of funding allows you to receive a lump-sum advance that you pay for with a percentage of upcoming credit card sales.

Approach Equity Investors

Equity financing may either be through individual angel investors or venture capital companies. In either case, you relinquish partial control of the company in exchange for the needed funding.

Arrange for Equipment Financing

It is almost certain that as your business continues to grow, you will need additional equipment. If you purchase equipment outright, though, you use up a large portion of your available capital. Instead, arrange to finance your equipment. The equipment serves as collateral, and once you have made all the payments, it’s yours.

For more advice on obtaining growth financing, contact KMS Funding.