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5 Ways To Find The Money To Expand Your Business

3 June 2016 No Comment

canstockphoto15314892When the time comes to expand your business, you will have to spend some money. If you’re thinking about how to find that money, here are five options to consider.

  1. Use a Venture Capital Firm

A venture capital firm is one that works alongside you to find investment in your business. They find wealthy investors and then use their cash to invest in businesses. They act as a link between companies and wealthy people who are looking to take on risky investments. You can contact these firms directly, and then the negotiations can begin. This can be a long process because they will want to get the best deal possible. It is a good way to get investment for businesses outside the mainstream.

  1. Find an Angel Investor

An angel investor is one investor who is looking to invest in one company. And that company could be yours. Every business likes the idea of finding an angel investor who can hand them the money they’re looking for. Of course, the investor gets ownership equity in return for the money. But the good thing is that they tend to only play a financial role. So, you won’t have to worry about them trying to interfere in the business decisions that you make, which will be a relief.

  1. Take Out a Loan

Loans are always a good option when you’re looking for money, so don’t rule it out. Yes, debt can lead to trouble, but it doesn’t have to be that way. As long as you are sure that the loan you take out will be repaid within the agreed repayment term, there should be no problems. You can get a conventional loan from a bank or other creditor. Or you can look at the alternative options. A website like Business Lender Match can help you link up with different kinds of lenders.

  1. Reinvest Profits

If your business is doing well and you want it to grow, you might have some profits to reinvest. If this is an option for your business, then you should definitely take it. It allows you to grow your business without getting into debt or having to sell equity to investors. Saving up money over time allows you to do this, and cutting costs can allow you to invest even more money. This is slightly more complicated if you have shareholders to keep happy. But most won’t mind profits being reinvested.

  1. Issue Corporate Bonds

Issuing bonds is a good way to find some money quickly. A bond is like a small loan that is agreed between your company and an investor. They give you that money, but they expect to get it back with some extra on top too. But if you expect the business to do well in the future, then doing that shouldn’t be much of a problem. It’s easy to set up a bond selling system if you want to do it. Just make sure you understand how the agreement between your company and the buyer works.

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