Growing Your Small Business

When it comes to taking out a loan for business growth, many small business owners are hesitant. While the idea of being in debt to help grow your business can sound frightening, many times it is necessary to ensure that your business continues to grow. For example, in order to start up a small business, the owner must invest some of their funds into the business. Without this initial bit of growth capital, a business cannot get off the ground. Yet in many cases, further business growth cannot be conceivably funded out of pocket. Here are some examples of growth capital loans, and how they can help your small business reach new heights.

Venture Capital Firms

Venture Capital Firms often invest in a young company on behalf of their clients in exchange for a say in the runnings of the company. Equity is a wonderful source of growth capital because there are no loan repayments or liabilities, however most Venture Capital Firms will sent a representative to help weigh in on executive decisions in your company, meaning you lose some of your independence as the owner of your small business.

Angel Investors

Much like Venture Capital Firms, Angel Investors invest growth capital into your company in exchange for a say in the business decisions of your company. While an Angel Investor invests out of their own private funds, they will not require any form of loan repayment and can connect your business to a larger network of customers and investors. While these kinds of investors will reduce some of the independent say you have in your business, they can act as a wonderful source of growth capital that does not require repayments.

Bank Loans

Another source of growth capital is a bank loan. Bank loans are a traditional way of acquiring growth capital, but can be difficult to get if your business has a less than stellar credit score. Many times, applying for a bank loan means providing the bank with records of your customer transactions, your financial history, and a detailed plan of what you intend to do with the loan money. However, other than making sure your loan payments are on time, a bank will not a interfere with your control over your company.

If you are looking to find out more about how to grow your small business, Vankeith Commercial capital has a wide range of articles to help you get started. With everything from growth capital to marketing tips, you’ll be a small business expert in no time.