Where Can You Get Money for Your Business Growth?

Trying to run a business without enough capital is like trying to drive a car with an empty gas tank. You don’t get very far!

For entrepreneurs and small business owners, capital for growth and expansion can be difficult to obtain. But that capital and how you get it can be crucial for your business success.

There are several ways to get capital: with self-funding from yourself, a family member or friend; with venture capital from investors; crowdfunding; and a small business loan.

Several Possibilities

Many small businesses are launched with self-funding or “bootstrapping.” Although limited, self-funding has the advantage of giving you complete control. It also comes with some limits and liabilities.

With self-funding, you retain complete control over the business but you also take on all the risk yourself. Be careful not to spend more than you can afford, and be especially careful if you choose to use tap into retirement accounts early. You might face expensive fees or penalties, or damage your ability to retire on time — so you should check with your plan’s administrator and a personal financial advisor first.

Investors are a good funding source if you can get them. It also comes with some strings attached – venture capitalists will often demand a share of ownership.

Small Business Loans

Federal Small Business Administration loans remain an outstanding source for many companies and entrepreneurs. With experienced organizations like Midwest Small Business Finance, SBA-guaranteed loans are hard to beat. When a bank thinks your business is too risky to lend money to, the SBA can even agree to guarantee your loan. That way, the bank has less risk and is more willing to give your business a loan.

MSBF goes even further by helping both the banker and business owner reduce the paperwork and other hassle sometimes associated with SBA projects. Today’s SBA loans are much streamlined, and MSBF provides outstanding support to make your business financing effort smooth and easy.

If you would like more information on this topic, this page on the SBA website provides an easy-to-read guide on all types of business lending. If you’re ready to investigate your options today, contact MSBF today: Loan Officer Frances Sheffield, EDFP francess@simplymoreloans.com; or Business Retention Specialist Julie Lewis juliel@clayedc.com; (816) 468-4989.