There’s nothing more exciting than knowing your business is growing and making plans for its expansion. However, in order for that expansion to be successful, you must ensure financial stability. Going online to get a wholesale license in California is a smart move, as is knowing how to get funding for a business.
Maintain a Healthy Credit Score
Assuming you’ve already completed a cost forecast, your next step will be to request and examine your business and personal credit reports. Take the time to correct any errors and build up your credit if needed; this will go a long way toward helping you get business loans if you need them.
Popular Sources of Capital
Now that you know where you stand with your credit score, and assuming you’ve gathered some capital yourself, it’s time to choose a financing source. Each has its benefits and investor motivations.
Crowdfunding
If you already have a customer following, they can help you generate small business funding via crowdfunding. Typically, your loyal micro-investors will be motivated by having a sense of ownership in your company. They will also be more than happy to create lots of expansion buzz.
Bank Loans and Lines of Credit
This option is a popular choice for expanding businesses, as it offers a variety of products. For example, a business needing some new equipment can get equipment-specific financing. Banks and lenders will want to know their loan will be repaid. They also benefit from the interest income.
Personal Loans
Thinking about how to raise money for a business without a loan? Ask friends and family to help. This can also be a viable option if you don’t need a large amount. Although they won’t want any control in your business, they will want to know your plan is viable, so have your business plan ready to present if going this route.
Angels
Those wishing they knew how to get funding for a small business may benefit from an angel investor. This is the route to take when you need a larger amount of money. It requires you to have the confidence that your expansion will be successful, and the numbers to back it up. Angels are motivated by the fact that they will receive a share of your company’s equity in return for their investment.
Venture Capitalists
This option is a means of securing a large amount of capital in business, as well as advice from experienced and successful business owners. Having a venture capitalist interested in your business means that it has serious growth potential. Venture capitalists are motivated by the large portion of your business they receive in exchange for the money they lend to you.
Fast Services for Expanding Businesses
Getting the business funding you need from the right investors can be a time-consuming process. So can waiting in line for business filing services. That is unless you choose FastFilings. We eliminate the wait by offering the business filing services you need online.