Are you planning to grow your business? If so, you’re far from alone. Currently, many small businesses are feeling expansive and optimistic about the future. A recent study by TD Bank found that more than half of all small businesses planned to grow in 2018, a seven percent increase from the previous year. The businesses surveyed include many diverse industries including real estate, healthcare, IT, finance, manufacturing and many others.
Ways to Accelerate Small Business Growth
Small business growth helps you realize your potential, serve more people and, of course, take in higher profits. If you want to grow, you need a workable strategy. One of the requirements for business growth is healthy cash flow and line of credit. The following are some of the best ways to finance small business growth.
Attract More Clients
You can generate more business through marketing, being more active with social media and by encouraging customers to write online reviews. While some of these tactics require funding, you can do them for free or at a low cost if you’re creative. For example, organic social media posting and blogging don’t require any financial investment.
Bank Loans or Financing
Small business loans can help to fund expansion whether you want to invest in inventory, advertising, equipment or hiring employees. Of course, banks have strict criteria when it comes to lending and it helps if you’ve been in business for a while, have references and collateral. You also need to show a strong business plan.
Work to Improve Your Business Credit
By raising your business credit score, you not only become eligible for loans but better terms from vendors and suppliers. Start by applying for a business credit card if you don’t already have one. Establish credit with as many suppliers as you can and pay your bills promptly.
Invoice Factoring: Another Way to Help Your Business Grow
You should investigate every possible tool and strategy to fund small business growth. In some cases, however, traditional methods aren’t enough to meet your needs. If you’re having difficulty getting a business loan or if the amount you’ve secured is insufficient to fund your growth, you should look into invoice factoring. This is an alternative type of financing that lets you collect payment for outstanding invoices up front. Instead of waiting 30-60 days for customers to pay, invoice factoring provides you with immediate working capital. There are several benefits to this type of financing as well.
- Obtain Funds Quickly. Once your invoices are approved for factoring, you can receive cash within 24 hours.
- You Don’t Need Perfect Credit. The factoring company is more interested in the strength of your customers’ credit than yours since that is who they will be collecting payment from.
- No Debt Incurred. Loans can help you fund growth but they also mean incurring debt. Over time, you have to deal with compounding interest. Invoice factoring doesn’t involve debt. You only have to pay a small fee for transactions with no compounding interest.
- Reduce Expenses and Save Time. Invoice factoring lets you save time and reduce administrative costs. You and your employees will have more time to devote to customer service, marketing, and business expansion, instead of invoicing and collections
To learn more about how invoice factoring can help you with small business growth, contact Riviera Finance, one of the leaders in small business financing solutions.