It is an exciting time for a business owner when a company is ready to achieve its potential for growth. However, realizing this growth often entails purchasing inventory and equipment, taking on additional personnel, and working longer hours. Fortunately there are multiple methods of attaining growth financing. Here are some options so you can determine what will work best for your business.

Obtain a Line of Credit

Lines of credit are flexible forms of growth financing. Once you are approved, you can withdraw funds up to a predetermined limit, and you are only required to pay interest on the withdrawn funds. Obtaining a line of credit from a traditional bank involves strict qualification requirements and a lengthy process, while online lenders are more relaxed in their requirements and will approve you quicker.

Get a Loan

A traditional bank loan, known as a term loan, is one of the less expensive means of acquiring growth financing. However, the application process for these loans is tediously slow and a high credit score is essential. Alternatively, you can approach an online lender for a loan. Another possibility is a loan guaranteed by the U.S. Small Business Administration, but the SBA is also slow to process and approve applications.

Use a Credit Card

A business credit card is similar to a line of credit but is quicker and easier to obtain. Under some circumstances it can assist you with growth financing. Always make responsible use of it, though, so that accumulated debt does not negatively impact your credit score.

Apply for a Cash Advance

A merchant cash advance is a quick way of getting a lump sum of growth financing and paying it off through upcoming credit card sales. You avoid the uncertainty of regular loan payments because the payments are linked to your volume of sales.

Approach Angel Investors or Venture Capitalists

Angel investors are individuals who invest in businesses, while venture capitalists are members of investment firms. In either case, they offer you growth financing in exchange for equity in your company. Only take this route if you are comfortable with relinquishing partial control of your business.

Finance Your Equipment

If you specifically need to buy equipment to grow your business, you can consider equipment financing. The equipment you require becomes collateral for a loan, and when you have finished paying off the loan, the equipment is yours.

For more advice on acquiring growth financing for your business, contact KMS Funding.