How do I finance my company’s growth?
The financing of buildings, equipment, inventory and other tangible assets is typically easiest as the asset can be sold if needed to recover a portion of the cost of the asset (collateral). Identifying the life of the asset and related financing is also easier. Calculating other related costs such as maintenance, repairs, real estate taxes, insurance, installation, training and other categories is necessary.
Financing of additional staff, leasehold improvements, software and other similar expenses typically takes more cash invested, other collateral, an SBA guaranty, longer history of profitability or other more unique debt structures. Sometimes a line of credit also can be used for this to help make sure debt is not growing faster than inventory, receivables or other indicators of success.
Overall, do a projection on the financial effects of your growth expense and visit with your business advisers.