Expert Insights: Strategies to access capital for your company’s growth beyond simple debt or equity transactions.
December 12, 2018
What are some ways to finance your company’s growth other than a commercial loan or an equity investment?
Capital for your business can often be secured through the sale of short term receivables for 70% to 80% of face value. Another option is securing financing from your vendors. This approach may be a less expensive alternative to borrowing from a financial institution and creates positive cash flow to the extent negotiated terms allow for payment after the purchased inventory is sold.
How can you adapt your financing plan in ways that enable you to access required capital without compromising your long-term goals?
Strategic partners are often the answer. They are well informed and have a long term investment horizon. They provide capital in any number of situations offering more flexible terms than financial institutions. These partners are other businesses that have strategic reasons to be involved in your company, industry or market and likely share your long term view. State and local government agencies also provide development programs for manufacturing infrastructure projects and other long-lived initiatives such as local business expansion in the form of credit enhancements, tax credits/benefits for job creation as well as outright grants.