In today’s economy, debt is a four-letter word — but it can also be essential for growing a business. Here are some options that could help boost your working capital.
Stretching a company’s working capital through various forms of debt can be the source of just enough extra cash to fund revenue-generating marketing programs or help companies manage when customers don’t pay bills on time.
The trick to securing debt is first exploring your funding options long before you can’t make payroll. Your job is to learn what type of loan best matches your operations and customer activity. Here are a few choices to research:
SBA-backed loans
The Small Business Administration (SBA) operates several loan programs for startup and advanced-stage businesses. The first thing to know is that you don’t usually apply directly to the SBA for a loan, but to a local bank that participates in the SBA loan program. Some of these loans provide long-term financing for ambitious real estate or manufacturing expansion programs, while others help business owners buy franchise outlets or start new businesses.
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