When it’s time to grow your business, cash flow is vital. Whether you need to open an additional location, build or expand a building, or tap a new market, an SBA loan can help you meet the demands of business growth.
Here are some things to consider when considering a business expansion:
1. Plan ahead
For some businesses, growth happens rapidly. For others, it can take a little longer. In every case, growth is a process that requires time and money. During this process, there can often be a time lag between when you need to invest and when you actually have funds to invest. That’s why it’s important to plan ahead so you have the needed capital to invest in your business.
2. Have a strategy
Growing a business without a strategy isn’t a wise idea. It’s important to plan out your expansion and make sure you can manage the anticipated growth. A business plan that details your strategy for expansion will help you navigate growing demands. Preparing detailed financial projections showing the anticipated results of your strategy needs to be part of that plan.
3. Forecast the costs
Take some time to calculate the associated costs of your business’s expansion. Whether you’re purchasing a bigger space, buying additional inventory, or hiring new staff, you’ll want to get estimates of what that will cost so you’ll have a better idea of the amount of financing you need and the best way to structure your loan. In some cases, having a long-term loan to cover the capital costs is all you may need, but often you may need an additional line of credit to cover short term operating costs as well.
4. Find a lending partner
When you’re ready to start the process of obtaining a business expansion loan, you’ll need a lending partner. At FNB Small Business Finance, we specialize in finding the best fit for the controlled growth of your business.
5. Decide between a conventional or SBA loan
While there may be several financing options available for business expansion, the SBA’s loan products offer particular advantages to growing businesses. Each product has its own features and benefits, so be sure to work with an SBA expert to help you choose the right route for your business.
At FNB Small Business Finance, our SBA experts look forward to partnering with you to achieve your business goals. When you’re ready to get started, contact one of our Business Development Officers!