How to Go About Obtaining Growth Capital Funds for Your Business

Quite a few small business owners hesitate when it comes to taking loans out even if the purpose of the loan is to fuel business growth. Yet these same business owners notice that the growth of their businesses is virtually stagnant without extra capital to pour into their businesses to help spark the new growth to occur. However, few business owners have considered getting loans from community banks or credit unions. More business owners should consider it, however, as they have more interest in funding local businesses, which means that the business owners may be able to get loans for a lower interest rate than they would be able to if they went with other, more traditional forms of funding for their business.

Owner Investment:

While owners will have to use their own cash to infuse into their business when their capital runs out other funding such as growth capital funds can be taken on to help continue to grow the business further.

Venture Capital Firms:

Venture Capital Firms are institutions that are willing to invest in new businesses to help them start their operations up in exchange for a predetermined amount of equity in the company in return. Large investments from such institutions oftentimes will help companies find a new direction and will fuel them to grow in a certain new direction. You don’t have to worry about repaying loans if the business fails as the venture capital firm will simply own in return for their investment.

Angel Investors:

Angel Investors are often individuals or groups of people with deep pockets who are willing to lend to small, growing businesses simply based on their opinion of a company. Companies they like and whose concepts they believe in are the ones that are most likely to receive funding from such groups. These people will often also offer advice and business savvy tips to the company and help them connect with others in the industry to help grow their business.

Borrowed Funds:

Debt is a viable source of funding for many small businesses. Borrowing money allows the business owners to do what they wish with the capital they borrow. However, borrowing too much money can take a toll on the business and stall growth in the future if the business can’t pay back all that it borrows. Borrowed funds are borrowed from banks or other institutions and must be paid back even in times the business is under financial stress.

These are just a few sources of obtaining growth capital funds for one’s business. There is any number of ways to get funding for your business. You just have to know where to go and where to turn when you need the help the most.

For more information on where you can get your business capital growth funding when you need it please feel free to contact us at Royalty Business Lending for additional assistance.

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