How To Fund The Growth Of Your Small Business

small business loansWith the growth of your small business, your funding needs don’t diminish. Instead, you’ll need some form of financing to expand into additional markets, bring in new recruits or contract employees, purchase new IT equipment, add to your facilities, or introduce new variations of your products and services.

Finding funds for supplementing your growth should be easier than financing the start-up phase of your company as your business can demonstrate its history of operations. However, the obvious funding sources, such as angel investors and conventional banks, still need to be convinced about the growth potential before they agree to investment, so a small business owner should get creative and look for alternative sources of finance and other capital funding services in case the usual ones can’t be accessed.

Here are some alternative sources of funding that can augment your company’s drive towards growth:

Export loan program

Small business owners barely pay attention to loan programs pertaining to exports. The Small Business Administration has $500,000 in financing available in the form of revolving line of credit as well as a term loan.

The requirements are that the business must have been in operation for at least twelve months and must demonstrate that the funding will be used to promote export activity. So if you’ve been dealing with overseas clients, you can use the funds to expand production facilities, host and participate in foreign trade shows, and finance orders.

Sometimes a loan may be given to a business that has operated for less than twelve months (don’t hesitate to ask about your eligibility). You can also get in touch with your bank to see if it is associated with an Export Express lender from the Small Business Administration.

Short terms loans from non-conventional finance providers

Managing finances is one of the important tasks you have on your agenda. When it comes time to grow operations, pay taxes, buy inventory, advertise or pay any unexpected cost that may arise for a growing business, you will likely need funds for help with working capital.

Short term loans are usually helpful when you need to cover temporary dips in funds or raise working capital for seasonal projects. Such loans can help you meet needs for growth financing immediately without requiring you to bind yourself in a long term repayment commitment. Business owners can utilize calculators for short term loans and receive instant estimates on the amount of funding their businesses may qualify for.

P2P lending

This is when an individual lends you money without an intermediary like a bank getting involved. As a result, if you have a good business growth plan, you may be able to utilize this form of funding. And, you may be able to get better terms than working with conventional lending institutions.

While the loans would be structured as personal finance to the business owner, it can be applied towards business expansion. Clothing designer Lara Miller used a P2P funding network to access three loans, which she used to launch her new clothing lines and web store.

Friends and family may also have the ability to lend money. The advantage of using lending networks is that members usually like expanding their portfolios and are often willing to take greater risks than family members or peers having to lend. In addition to these funding networks, you may also consider a business coaching or mentoring program to help you head in the right direction for your financing needs.


Image via LendingMemo

Written By
Sydney White is a Texas-born stay at home mom who enjoys spending time with her family, bargain hunting and, of course, writing. She is currently the editor-in-chief of

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