Expansion Loans For Small Business
Sometimes the best way to grow your business is to physically grow your business. This can be for a number of reasons, but an important aspect of deciding whether or not to expand your business is timing. One of the mistakes business owners make is waiting too long to act on expansion, leaving demands for their product or service unmet. By the time expansion finally happens, critical revenue may be lost. Your competition may have received the business instead.
Understanding the financial aspect of your potential expansion is even more critical to your decision. You must determine what your business needs to fulfill its potential growth opportunities, and calculate how much you expect to make in return versus how much you borrow. If the numbers and the timing make sense for your business, the next step would be to start shopping for the small business loan to expand your business.
Types of Business Expansion Loans
There are a number of loan types you can consider to fund your business expansion. Below are just a few of the more common forms of business expansion funding.
Term loans vary widely in both the amount you can receive and the amount of time you have to repay them. They can be good for larger purchases that may take a while to return value, but don’t provide ongoing and on-hand capital for expenses as they arise.
SBA Loans are not actually administered by the U.S. Small Business Administration. They’re loans issued by a banks or private lenders that are guaranteed by the SBA. These loans can be attractive for their flexible terms and lower APRs, but they can be difficult to be approved for.
Business Line of Credit
A business line of credit is a great option for small business owners seeking 24/7 access to the funds they need to get the job done. As you pay down your balance, that credit again becomes available for you to draw from as needed. The flexibility can be good for ongoing expenses.
Ways to Use Business Expansion Loans
Business expansion loans are typically sought for physical business expansion, but they can also be used for the following purposes.
Consider a Small Business Line of Credit From Headway Capital
Headway Capital offers a business line of credit up to $100,000. For some small businesses, this type of funding may help to keep their business expansion costs in check. Whereas term loans and SBA loans offer exact amounts, a line of credit offers the flexibility to use only as much as you need, and still borrow more as your credit line is repaid.
Once approved, drawing from your line of credit is quick and simple. Just log in to your online account at any time and request a draw up to your available credit limit. You’ll have the funds available in your bank account as soon as the next business day.
1We always do a soft inquiry unless your credit file is restricted, in which case we would ask you to contact the credit bureau to lift the restriction. Doing so may result in a hard pull.