Businesses are born from dreams. Yet once your business is up and running, those same dreams can grow bigger than your small office. If they’re to become a reality, you’ll need to expand your business wisely, quickly, and soon. However startup businesses do not have lengthy records and reputations as other, more established companies. Which makes obtaining funding for expansion an added challenge. This is why it’s worthwhile to consider alternative lenders to provide the financing you need.*
Here are five ways to expand using small business startup loans:
1. Finance new equipment/technology
As a startup, your productivity levels are often dependent on your current equipment and technology. You will need financing for new and updated machinery, software, and electronics to meet demands and to ensure growth of your output.
2. Renovate your business storefront
If you are a retailer or service provider with a store, consider the storefront to be the face of your business. It makes a first impression on your customers and requires an appealing display conveying style and professionalism. You may need to apply for financing to ensure your business storefront looks good including new signage, lighting and other features.
3. Fund new product development
While your offerings may be initially successful, changes in the industry and consumer tastes may necessitate some product modifications. Financing new product development is costly, especially when it comes to funding labor and materials. However, startup financing could reduce the cost burden of research and development.
4. Hire new employees.
To keep your business on track for growth, you may have to hire more workers to sustain a steady output. One simple business rule: No matter what, your workers have to be compensated. The concern is money from clients can be delayed or not yet existing. Financing can act as a bridge to make sure your workers’ pay goes uninterrupted.
5. Rent a new space
While your current space might be fine today, a larger space may be needed to accommodate increasing number of staff, equipment, and more. If you have to move into a new space, you will need capital for additional rent and remodeling. A startup loan will give you confidence in knowing you will have the capital before you sign a lease.
Different loan options
While you could apply for financing with the U.S. Small Business Administration and traditional lenders, they may have restrictions that prevent you from obtaining the funding you need for a startup. They also can provide funding with stipulations as to how it is to be used for your business.
Rather than go through these typical lending channels, consider applying for a small business startup loan with an alternative lender. While many alternative lenders don’t provide financing to startups, some will consider lending to them. LoanMe, a leading alternative small business lender, provides capital to businesses that have only been operating for two months. We recognize that when it comes to your company’s continued growth, you know best.
Unlike SBA loans and private investors, LoanMe allows you to use your funds for any business purpose. LoanMe understands this is the kind of freedom that allows true business visionaries to thrive.
You need just three documents to apply for a small business loan, making the application process quick and easy.
*This article has been prepared for general information purposes only. The information presented is not legal, financial, tax or accounting advice, is not to be acted on as such, and is subject to change without notice. Credit approval is subject to LoanMe’s credit standards, and actual terms (including actual loan amount) may vary by applicant. LoanMe requires certain supporting documentation with each new application. If you have any questions regarding this, call us at 844-311–2274. California loans are made pursuant to LoanMe’s California Department of Business Oversight Finance Lenders Law License #603K061. LoanMe also offers loans in certain other states which may have higher minimum loan amounts. Copyright © 2015 LoanMe, Inc. All rights reserved.