Business expansions are a part and parcel of the lifespan of every organization, and even the smallest of them need to meet the associated expenditures to meet expansion goals. Expansion can be in the form of getting more machinery, increasing the inventory or simply expanding operations to other cities and countries.
The first thing most people will turn to is dipping into their own savings. But, most of the times this may not be possible. They then turn to friends and family to help with the finances, and get the expansion plans underway. This is called bootstrapping, and it may not be enough to sustain you in the long run. However, it allows a person to put their plans into action and create a business history. This business history which showcases the business intent and earnings is useful when a person approached a bank or an NBFC for a business loan.
Here, we are listing some ways by which you can get funds for your business expansion:
Here, we are listing some ways by which you can get funds for your business expansion:
- Angel investor: A seed investor or a business investor will offer you funds for expansion, in lieu of convertible debt or ownership equity. Angel investors are always on the lookout for investing in businesses with the potential of high returns.
- Equity investor: Venture capital and private equity are the popular options under this category.
- Business Loan: One of the most popular business funding options, business loans are offered by banks and NBFCs. However, a business has to meet the eligibility criteria before the loan is sanctioned.
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