If you are looking into financing for business growth, there are several different options out there for you to consider. Here is a basic summary of the different kinds of loans you can look into.
First of all, you could look to finance your business needs by means of a traditional bank loan. Bank loans come in several different arrangement types, each useful for different situations. You could look into a line of credit loan if you have a small business and need to draw out your checking account funds for a short time. Or, you could take out a balloon loan if you are expecting a big payment to come through at a future date but need funds to operate in the meantime. You may even decide that an installment loan situation may be the best for you; this type of loan is paid back monthly with the full amount being given to you at the onset.
Perhaps, though, a non-traditional loan agreement would be more suitable for your situation and your business growth. You could decide to draw from personal sources, such as using a personal loan or credit card, or maybe even by making an agreement with family or friends. This could be a great option as the repayment terms may be more flexible, and they don’t have to worry about your character since they already know you. You would want to make them aware that there are risks with growing a business, as you wouldn’t want to be on bad terms with them in case something were to go awry in your planning.
If you would prefer not to draw from personal sources or take out a bank loan, you may want to look into some SBA loan options. These government- based loans are only for small businesses, and there are so many options available for each different SBA loan situation. If you weren’t considering it before, know that it may be worth your while to dedicate a little time and research into the possibility.
One last loan type to mention is trade credit. This kind of debt can be an invaluable tool for business growth, as it involves making an arrangement with your business’s suppliers to let you pay later, though you can buy their materials now. This has freed up a lot of companies to do more business with others, the only downfall being that it can sometimes become pricier than paying at once. Overall, with the great variety of financing options available you, you have great potential and opportunity in growing your business today.