It’s natural to want to push a business forward at every possible opportunity. However, sometimes there is a gap to do this, and the funds might not be available. Thinking logically about these options can help you make a decision, whether it’s the right time to invest more to grow a company. So how can you do this with limited funds and still make a move?
Take a look at some of the top ways to finance business growth and invest for future success.
Business loans
Loans are a straightforward way to finance a company. When you have regular income and a healthy balance sheet, it can help you gain funding from a range of mainstream sources. In the current climate, lending does have strict criteria, but like any other type of loan, you’ll need to prove your liquidity and means to pay it back. For a company that is going from strength to strength and needs a boost, this shouldn’t be much of a hurdle to overcome to get the finance you need.
Use personal funds
Investing your own money into the business can be a great idea if you feel confident in a healthy return. There are pros and cons to this type of cash boost. However, some of the benefits are that you don’t owe external businesses money back and can personally make some return on your input.
Investment opportunities
Investing some of the money in your business can help you gain an extra boost for future operations. There are many options available to companies, and using an asset management platform will ensure you have all the information you need in one place. This type of platform is excellent for an asset manager and institutional investors, too, as you can manage all of your client business in a standardized fashion.
Crowdfunding opportunities
You may have seen numerous startups gain funding this way. However, there is an opportunity to boost cash flow for new projects in an existing business. This is particularly good if you have an established customer base and want to drum up not only funds but also positive PR for your company. You can set the amount of funding you need to get the project rolling and offer something in return for different monetary amounts pledged. By using this funding platform, you are also giving your customers a voice in what you do and how your products and services could work better for them in the long run.
Government grants
For some business growth boosts, you may be able to apply for a government grant. Many opportunities are offered depending on your location, and each has criteria you will need to meet to gain access to funds. These schemes are also available on a national and local level, so take a look at both options to see what could work for your business model.
There are several other long term and short-term ways to boost business finance, including:
- Overdraft facility
- Credit cards
- Angel investors
- Venture capital investment
- Family lending
