Not sure how to finance new business growth?
New businesses need working capital to cover expenses and accelerate growth.
Additionally, during the first few years of operation, most companies are just managing to cover daily costs and the day-to-day business operations. As a result, new businesses often don’t have the additional funding or cash required for growth. Consequently, business owners can’t invest money in infrastructure, new team members or take advantage of expansion opportunities and new projects.
Fortunately, there are ways to finance new business growth without breaking the bank. You can apply for a loan from the bank or explore invoice factoring.
In this blog post, we’ll explain both these options in detail.
Bank loans
Once you apply for a loan from the bank, the bank will set the loan terms. This includes interest rates, timing and number of repayments, and the payback period.
As a result, it’s good to do your research and shop around for the best rates and a repayment period that fits your business’ needs and goals.
On top of that, the bank will need to evaluate your business plan or receive multiple forms of collateral.
On the downside, loan applications can take a while, and your application might not get approved if your credit history and /or the company’s financial performance do not meet the bank’s standards.
Invoice factoring
Invoice factoring is the way to go if you’re looking for a more accessible, readily scalable yet more expensive solution.
It is when you sell your invoices at a discount to a factoring company like Kore Capital in exchange for cash.
Invoice factoring is not a loan, it is simply an advance against what may be your most valuable asset; your accounts receivable. Moreover, you can establish a factoring relationship if you have blemishes on your personal credit, your company has little to no net worth or your earnings have not yet taken hold.
If you’re interested in invoice factoring, visit the Kore Capital Corporation website today.
We’re a factoring company specializing in providing short-term capital to small businesses. Contact us today to learn more about how you can finance new business growth.