How to Use a Business Loan to Grow Your Business

Whether you are just starting your business or looking to expand to the next phase of your roadmap, capital is always good to have in order to run a successful business. Even if you already have your own capital, chances are you would need a small business loan from time to time. Depending on how big your business is and the industry, working capital loans can transform the way your business runs if invested smartly.

Here are some ways that you can use small business loans or a business line of credit to grow your business in the most efficient and sustainable way.

Invest in professionals
Creating a business requires a lot of effort and you are by no means a fountain of all knowledge. In order to reach your full potential, a key area of investing in small business loans is in recruiting experts that can help you grow. Invest in a business coach with proven industry experience who can help provide insights and advice, sales coach to assist you with a marketing strategy to increase sales conversion and profits and a finance director to help you control costs and discover ways to leverage your business. A good team of lawyers is also important to grow your business. Experts help you be better and have a life outside your business.

Update your website
Your website is your 24/7 business concierge service and you must give your customers the best possible experience on your website. A good website can serve as both a global storefront and a means of growing your brand and community. An old, clunky website will set you back a lot of customers. You could use part of your business loan to hire a website designer to upgrade your website and especially optimize it for mobile phones and tablets for today’s generation.

Operating cost
You can use your working capital loan to take care of your business operating costs like machinery, invoicing, electricity bills and other operating expenses. You can also invest your small business loan in purchasing a van for deliveries and logistics if your business needs one.

Expanding business outlets
Another smart use of capital for businesses is opening a new location or moving your business to a larger, better location in readiness for expansion. Moving to a new location could involve renting or buying office space, warehouse space, a mobile truck or pop-up shop materials. A larger store means a larger assortment of offerings and the potential to increase your customer base. You are able to reach more customers when you move to a busier location which will lead to business growth.

Refinancing other debts
Running a business sometimes leads to debt and consolidating your debt by means of a business line of credit is a smart way to use a small business loan to grow your business. You can increase your inventory, deduce interest payments on some debts and pay down urgent debts that could prevent your business from reaching its potential.

Capital for Business offers you easy access to small business loans with a lower cost of borrowing as well as a convenient process to make life easier for business owners. Call us or send an email today for a free consultation on how to grow your business.

Top 4 Sources of Financing for Your Business

Top 4 Sources of Financing for Your Business

Starting a new business is always an exciting journey. Financing a new business is usually risky as you don’t have revenue, a track record or a customer base to chase after. Finding capital for business as an entrepreneur can be tough sometimes as the level of risk is high. Luckily, there are many sources of financing that small business owners call on when they are looking to start up their business.

1. Friends and family

Our friends and family make up what is called “love money” when seeking working capital loans as a start-up and usually the first resort. When raising capital for a business from friends and family, a great approach is to ask for a loan with a promissory note which clearly states the terms of repayment. You may also offer equity in exchange for capital.
One of the benefits of this source of financing is that the terms are typically flexible and easy since friends and family are usually not cutthroat or experienced investors. Regardless, the business owner should also avoid things getting tricky in the future by getting a lawyer to draw up either an equity structure or a legal agreement which contains a risk acknowledgment clause.

2. Personal investment

Most entrepreneurs start their business with their personal funds as the initial source of capital for the business. This could either be in form of cash or collateral on personal assets. Bootstrapping is usually a sign to banks and potential that the business owner is committed to the project in the long term and ready to take risks to make it happen. Once the business starts having some cash flow, most of the profits are also reinvested into the business as part of the capital for business. This is one of the benefits of funding a business through personal investments is that the founder can retain the most part of the equity.

3. Venture capital

Technology-driven start-ups and other companies that have a potential for exponential growth as well as a huge capital outlay in research and development. Venture capital financing for working capital loans is usually in exchange for equity and most venture capitalists expect significant returns on their investment. When seeking venture capital, it is always advisable to look beyond the money and more into the type of investor. Venture capitalists with useful experience and business knowledge are more ideally positioned to help a start-up grow because they bring important industry connections along with the financial means.

4. Bank loans / Alternative Financing

Small business loans and business lines of credit are some of the most popular sources of funds for medium and small businesses. Because all banks offer different terms and benefits, it is always a good idea to shop around and identify which offer best meets your business needs. Getting a bank loan requires having a good track record, excellent credit history, and a viable business plan. You may also need to have a personal guarantee before a bank will consider giving you capital for business.
We at Capital for Business understand that financing a new business could prove challenging. That’s why we offer a wide range of financial solutions for working capital loans that are attractive and more beneficial than traditional bank loans.
Speak to us today for a free consultation in securing a working capital loan.

Working Capital Loan

Capital for Business-Your Best Source for Working Capital Loans-Loans from $5,000 to $500,000
Many of today’s small business owners use their cash on-hand to reinvest in their day-to-day operations. With a working capital loan from Capital for Business, you can have extra cash to do even more.
Whether it’s expanding or improving your current business, investing in advertising, or tying-up existing “loose ends” like taxes or outstanding debt, the extra cash can be just the solution you need. Capital for Business can get your business from $5,000 to $500,000 quickly and with a minimum of paperwork.
These days, regulations has made it much more difficult for many small businesses to get the working capital they need quickly from traditional banks and credit unions. But, small businesses are the backbone of the American economy and Capital for Business has developed financing solutions to help business owners get working capital that they need.
We can get you approved fast — in as few as 24 hours — and often the same day.
If a working capital loan would benefit your business then apply online today.
Whether you have good credit, bad credit, tax liens, or have been rejected by banks, Capital for Business is here to help you get the working capital your business needs.
Contact us and see what a working capital loan from Capital for Business can do for your business. Visit www.capitalforbusiness.net or Call 888.506. 3628 ext 1

Learn more