Expand Your Business with Growth Capital
No smart business owner likely ever said, “I want to shrink my business to success.” No. Growth, at least reasonable and planned growth, is important for a business’s survival and progress. But growth doesn’t typically come without growth capital.
Why is Business Growth Important?
Growth helps a business take advantage of new opportunities, expand its products or services, achieve lower costs due to economies of scale, obtain greater bargaining and buying power, attract new customers, and hire more staff. It spurs innovation, can lead to better marketplace differentiation, and defend against competition. Growth means more sales leading to more profits. Thus, growth capital can be a propellant for progress.
What is Growth Capital?
Growth capital refers to funds that a company obtains to help grow its business’s operations leading to a potential increase in its profitability and sustainability. Similarly, working capital is different from growth capital in that working capital is intended to provide funding for a company’s day-to-day operations. Both growth and working capital involve taking on debt. Equity capital can also lead to growth, but equity capital means giving up a share of ownership in exchange for funding.
What Are the Uses of Growth Capital?
Ultimately, growth capital can be used to purchase commercial real estate, expand a company’s physical facilities, buy equipment, acquire another company, enter a new market, increase employee headcount, and increase marketing.
What Are the Sources of Growth Capital?
Growth capital can come from these sources:
Conventional bank and credit union lenders offer term loans and lines of credit.
SBA growth capital can be obtained which guarantees some of the lender’s losses if the borrower cannot repay its loan.
Asset-based growth capital is funding based on using commercial assets as collateral for a loan.
Alternative lenders can provide affordable funding for companies to use for their growth needs.
Seek Expert Financing Assistance
Contact Atlas Capital Solutions for expert financing solutions. We help businesses and entrepreneurs navigate the alternative financing landscape to get the funding that they need to grow.