The Best Growth Capital Sources for Fuel Business Growth
Every business, small and large, aims to progress and grow. However, healthy growth usually requires a healthy infusion of growth capital.
The Benefits of Business Growth
Stagnation, the opposite of growth, leads to declining product/service quality, decreased employee morale, and diminished sales and profits. Continuing business growth helps an organization hire new employee talent, acquire new customers, identify and secure new sales opportunities, boost business credibility, fend off competition, stimulate operational quality, boost company morale, add new resources, and seek new opportunities. All these lead to increased profitability and stability. Yet, growth comes with a price and that price includes securing growth capital.
What is Growth Capital?
Growth capital is most often long-term lending that helps a company grow its business. Compared to short-term lending that is typically focused on working capital and day-to-day operating needs.
What Are the Uses for Growth Capital?
- Purchase commercial real estate
- Acquire new equipment to ramp up production or improve production efficiencies
- Add employees to meet the expanding demand for a company’s products or services
- Enter new markets
- Acquire another company
- Increase marketing efforts.
Sources of Growth Capital
There are four basic types of growth capital:
• Owner investment.
• Public equity. Getting capital from public investment money is complicated and expensive and changes the operating environment of a small business.
• Private equity. Like public equity, private equity requires giving up some ownership in exchange for capital. This type of capital can come from Venture Capital firms and Angel Investors.
• Debt. This is the most common type of growth capital. It can be sourced from commercial bank loans, SBA loans, and loans arranged through a financing specialist. However, debt does not involve a loss of ownership or control but does require regular payments over time.
Seek Expert Financing Assistance
Contact Quick Capital Funds for expert financing assistance. We offer a range of options to meet your needs and help you reach your growth goals.