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How You Can Fund Your Businesses’ Expansion Plans

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Once you’ve started a business, you may be surprised how quickly it grows, and a couple of years in, it might be time for you to expand. Whether it’s bringing on new clients or making a bigger product range, there are lots of different ways that you can expand your business. The problem is, it often takes a monetary investment to get where you need to be, and it can be hard to know how to fund it. Here are some suggestions to help you fund a business expansion.

Ask for help from family and friends

It’s not always feasible to do so, but some business owners get help to start their business from family and friends. Of course, this has some downsides, notably that it can ruin relationships if you don’t pay them back. You need to be confident that you’ll be able to return their investment. Also, unless you are friends with millionaires, family are likely to be limited in what they can lend you.

Fund it yourself

There are a few options for self-funding a business expansion:

  • Selling equipment or un-needed items you no longer use
  • Working part-time while building your business
  • Managing your cashflow to release funds you need
  • Using your savings

Some of these options are risky. For example, using personal funds to put into your business could potentially leave you out of pocket. You have to be very confident when self-funding.

Take out a loan

By far the most popular option among business owners is to take out a loan to develop their business. If you own assets, then secured business loans are an excellent choice, as they tend to have a low APR, and high acceptance rate. Of course, you should always be cautious when borrowing. You need to ensure you can pay it back without struggling financially, and that you can make the repayments on time, otherwise, you may end up with bad credit.

Many businesses find they need a financial boost at one point or another. A monetary investment can pay off in the long term, and the good news is that there are lots of options available to get cash into your business. It’s worth weighing up the pros and cons of each one and deciding which one will work best for you. If you aren’t sure which option to go for, consider getting independent financial advice, so you can be sure you’re making the right choice.

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