Photo by Austin Distel (www.distel.co) on Unsplash

It’s not easy to start and run a small business. However, if your business is already up and running, you have overcome many difficulties so far, including obtaining your initial financing. Of course, you already know this. What you might not understand, though, is that there could still be times ahead when you’ll need to finance your company again.

For example, you might need to get your company through a slow season or—better—to expand and grow. Therefore, the best way to finance your company will depend upon the circumstances you’re facing. Let’s take a look now at three ways you can finance your company, whether for growth or to get through a slow season.

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Finance Your Company with a Business Line of Credit

A business line of credit will finance your company with a new revenue stream so that you won’t have to dip into your personal savings or use an expensive credit card.

These types of loans are revolving lines of credit that can be either secured or unsecured. You’ll most likely be able to negotiate a lower rate and a higher credit limit with a secured line of credit. This is especially the case if you have some real estate you can offer as collateral.

Terms for unsecured lines of credit, on the other hand, will be based on both your personal and your business’s credit history. In addition, your lender will take into account your company’s cash flow.

You can use a business line of credit in a variety of ways. For instance, use it to resolve cash-flow issues or build up your inventory. Alternatively, you can use it to help your company survive a slow season. You could also use it to take advantage of opportunities that you might otherwise miss out on.

Is It Time for New Equipment?

When it comes time to finance your company by coming up with funds for new equipment, you’ll need to decide, first of all, whether to purchase or lease the equipment. If the equipment you need is likely to become obsolete within a short time, a lease is probably your better option.

However, if you need equipment that you plan to use for years, equipment financing would be better. This will allow you to purchase the equipment you need now without negatively affecting your company’s cash flow.

With equipment financing, you’ll find you have plenty of options. For instance, you could obtain up to 100% financing, and you can choose between fixed-rate or floating-rate financing. You might be able to opt for longer terms and lower monthly payments, as well.

So whether you need to finance your company’s new delivery van, purchase construction equipment, buy new computers and a server for your IT team, or more, look into equipment financing. This will give your business a better chance to grow.

Turn to Asset-Based Lending to Finance Your Company’s Growth

If your company has been around for long enough to have developed some meaningful assets, you could qualify for asset-based lending. Asset-based lending is a type of financing that’s secured by your company’s assets. Assets can include accounts receivable, inventory, equipment, trademarks, customer lists, and more.

Asset-based lending can finance your company through a time of rapid growth. As you know, it is at these times that a lack of working capital could really slow you down. In other words, asset-based lending will position your company for the success you’ve been aiming for.

Use asset-based lending to finance your company in a variety of other ways as well. For instance, use it for capital expenditures, to acquire another company, to restructure your own, or in a variety of other ways.

Conclusion

When you’re running a business, you never know what lies around the next corner. Multiple situations could require you to finance your company for more growth or just to get through a slow time.

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