An expansion business loan is for those growing or thriving small businesses that see an opportunity to grow but do not have sufficient capital.
Business expansion relates to any spending or action to increase the size of the company, increase sales, or increase profits of a small business. Increasing the size of the business can take the form of capital investments, as well as labour investment (hiring new employees). Generally, a business will look to expand when they feel they have enough systems and infrastructure in place to support the expansion. After mastering the craft and trade, and when a business feels it can service the new influx of business, a company may look to expand.
Another key to expansion is to ensure that the company’s base is solid enough to help aid during the high-growth period, but also ensure that the customer base continues to grow during the expansion to help offset or pay for the upfront and long-term costs related to the project. There may be a need for working capital purposes to help aid during this period when funds are being directed elsewhere.
A common reason for business expansion is when a company outgrows their current operating facility or supporting networks. As business growth ramps up, so is the need for modern and fully-functioning equipment or machinery to help keep up with orders. As your business grows, the reliance on quality workers to support the growth, as well as hiring new workers to help the company with production and marketing.
When you find yourself reinvesting in larger facilities, equipment, marketing, hiring, etc. you may find that your liabilities begin to outweigh your income. During those times, it may be crucial to obtain quality working capital finance. Investing in marketing to make your product or service known is important. As your business grows, the need for adequate inventory is crucial.
Contact us for assistance with obtaining an expansion business loan for your company.