Learn more about financing your business expansion today with some helpful articles, tips and resources. And when you're ready to grow your business, Bank of Oklahoma is here to help.
Ideas for Financing Your Business
Finding the funds to grow your business can be a challenge. But, if you're ready to expand, it's often necessary. Below, you'll find information on some of the best ways to start raising funds, so you can take your next step.
Small Business Loans
By far the most common way to expand your business, a small business loan can give you the funds you need to grow. Look for financial solutions that are designed with an eye toward your specific needs. Depending on how you intend to grow, you may find you just need a small equipment loan. Or, a larger SBA loan might be right for you. Of course, Bank of Oklahoma is happy to work with you to find the perfect loan or line of credit for your business.
If you have some personal wealth that you can funnel into your business, that can be a wise move for expansion. If you're like many small business owners, though, you may need to attract investors to provide capital for your expansion. You can pitch your growth to a potential angel investor, friends and family, or even potential customers on a fundraising platform. Just be sure to clearly explain why your business needs to grow now, and how they'll benefit from it.
Profits and Savings
A traditional, if slower, way of raising the funds to expand is through old-fashioned hard work and diligent savings. If you're hoping to expand soon, now is the time to double down on your work and do your best to grow as much as you can. Save as much of your expanded profits as you can. These savings can act as a loan to yourself. Once you've accumulated enough, you're free to expand as you see fit.
TOP 3 THINGS YOU SHOULD KNOW ABOUT FINANCING GROWTH
Should I pay down debt or invest my monthly surplus?When you receive some extra money it may be difficult to determine whether you should invest the funds or use them to retire debt. Financial theory recommends that if your after-tax return on investments is greater than your after-tax cost of debt then you should invest. However, remember to consider the inherent riskiness of the investment you select (i.e. you may lose the money you invest yet still have obligations to pay back the liability). Use this calculator to help analyze your situation.
If you're looking for a better way to fund your business's growth, let us make the loan process a little easier with our great services.
Considering Your Loan Options?
Learn more about our different loans and financial services, and then when you're ready, simply contact one of our Business Bankers. We're here to help.Make Appointment