Without funding for growth, many businesses are doomed to stagnate, or to continue treading water while rivals forge ahead and steal market share. To stay competitive and to perhaps get ahead of your competition, it’s critical to find ways of securing growth capital for your business. Here are a few ways you can consider for accomplishing that.
Venture capital firms
These company representatives routinely invest in new businesses for clients which have retained them, in exchange for some percentage of equity in a company needing funding. The investments made can be considerable ones, but that also means that a significant amount of control or interest must be given to the venture capital firm.
Probably the very first source of funding for company growth will come from the personal assets of a business owner. Just as it’s unlikely that all growth capital will be secured from outside interests, it’s also unlikely that a business owner will be able to supply all capital funding needed for growth. That means a mix of the two is most likely, and is probably the most desirable option as well.
Obtaining loans from a bank does have the advantage of not surrendering any kind of control or interest to the lender, but on the other hand it’s harder to secure the loan in the first place. If you are successful in obtaining a bank loan, the amount of monthly loan payments can be an ongoing burden to your company, and it can even have the opposite effect intended, i.e. hindering growth.
Angel investors are a slight variant on the venture capital firm model, in that they are groups which offer funding to a company and who represent wealthy clients interested in a business return. However, angel investors are not part of any company, nor are the investors whom they represent – they are instead individuals who are interested in specific companies and specific investments. These kinds of investors will sometimes also get involved to help a borrowing company acquire new customers and new suppliers, to the benefit of both borrower and lender.
For Business Growth, Contact Vankeith Commercial Capital
If you’re ready to take that next step toward growth and greater business success, but you lack the funding to carry it out, contact Vankeith Commercial Capital, the people who can help make that happen for you. Don’t let your competitors leave you behind, just because you don’t have the funds you need to scale up.