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Has your company grown little or not at all in recent years? Then you might be disappointed about this. That is why you may decide for yourself that you want to take the upward path next year. This often does not happen automatically, so you have to think about how you are going to do this. Business financing can help you with this. You can then invest in your company and that often leads to growth. Curious about what financing options are available to grow your business? We have listed four of them here.
1. Business loan
Entrepreneurs who apply for business financing for growth often opt for a business loan. This is not surprising in itself, because it allows you to finance a one-off major expense or a long-term investment in your company. You can use the money, among other things, to invest in expanding your workforce, but also in a new machine. Whichever of the two you choose, you can often get more work done. Because sales are growing, you can sell more and that often leads to growth. Because you invest with borrowed money, you have to repay the loan. You do this by paying back a portion every month. In addition to repayment, you also pay interest on a business loan.
2. Commercial mortgage
Your company may not be able to grow further because you are reaching the ceiling in the current building. In that case, expanding is an option, but you can also choose to move to a larger business premises. If you prefer the latter, you must first determine whether you want to buy or rent. Do you want to buy? Then you need a big bag of money. A commercial property is not cheap. Fortunately, a business mortgage can offer a solution. This allows you to largely finance the business premises. Just like with a business loan, you also repay a business mortgage by paying back part of the loan amount every month. In addition, you also pay interest on the entire amount.
3. Business credit
Anyone who wants to grow their business must invest at the right times. Unfortunately, it is not always possible to invest when you see opportunities. For example, you may not have enough money in your cash because customers pay (too) late. This can hinder the growth of your company. If you no longer want to be dependent on others to invest, apply for business credit. A lender will then deposit an amount of money for you in an account that they open especially for you. You decide how much you withdraw and when you do this. With business credit, you only pay interest on the money you withdraw. Moreover, you can reuse the repaid money if necessary.
4. Business lease
Do you want to grow your business by purchasing a new machine or vehicle? Then you can apply for a business loan for this. Instead, you can also opt for a business lease. More and more entrepreneurs have been using this in recent years. This is mainly because you invest in a business asset without immediately paying the full price. Do you opt for business leasing? Then working capital remains available, allowing you to invest when you see opportunities. If you approach it smartly, your business can grow.