Guide to Financing the Growth of Your Business

By Robert Whited Business Financing 101 Small Business Financing March 18, 2014

Are you thinking about financing the growth of your business? That’s great! In this post we cover questions you should ask yourself before seeking financing, real world business growth case studies and the types of financing available for your business.

Let’s get started!

Questions to Ask Before Financing the Growth of Your Business

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The U.S. Small Business Administration recommends asking yourself the following questions before you begin your search for financing:

  • Do you need more capital or can you manage existing cash flow more effectively?
  • Do you need money to expand, or as a cushion against risk?
  • How urgent is your need? Days, Weeks, Months?
  • For what purposes will the capital be used?
  • Is your business seasonal? Do you need a loan to bridge the gap until your next season?

You will have different financing options available depending on how urgent your need is, what the capital will be used for and what stage of growth you are in.

For example, some lending institutions will focus on early stage businesses, while others will only finance those who have been in business for a certain number of months or years.

Before you reach out to lending institutions, know your needs and timetable so you can seek out the best deal for you.

Read on to learn more about financing options that could help you expand your business.

Types of Fundable Business Growth Opportunities

At ARF Financial we lend to successful businesses that are looking for quick lending options to take advantage of growth opportunities such as:

  • Adding a new location
  • Purchasing inventory
  • Buying out investors
  • Improving cash flow
  • Adding a bar / extending the bar
  • Paying off a cash advance
  • Starting an expansion project
  • Beginning store renovations
  • Taking advantage of surprise opportunities

If you are looking to do any of the above, read through the case studies below and see how we can help you.

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Case Studies:

Adding a New Location

A restauranteur was in the process of looking for an additional location. He qualified for a $50K line of credit with his local bank, but was seeking more than that. Through ARF Financial he was able to have $150K available at his disposal for the new location.

Purchasing Inventory:

A bicycle shop needed $150K to purchase a large block of inventory to qualify for a significant price break. ARF Financial was able to provide the loan, and the shop owner was happy because he didn’t have to make his first payment for 30 days. This delayed payment option freed up additional cash flow, giving him a competitive advantage in the marketplace.

Improving Cash Flow / Paying Off a Cash Advance:

A large multi-unit operator was able to save over $300,000 in annualized cash flow by paying off a cash advance using one of ARF Financial’s loans. The cash flow savings significantly improved his business and he is now able to profit from his growth!

Taking Advantage of Surprise Opportunities:

A large specialty restaurant struck up a big marketing deal with a local university’s athletic department, but needed $100K within a week. ARF Financial was able to fund the business owner within 6 days, and his restaurant is now featured at all home football and basketball games at the university.

Adding New Equipment:

A franchisor required a franchisee to purchase new equipment within four months in preparation for the launch of a marketing campaign for a new product. The franchisee needed $100K to purchase the equipment fro his multiple locations. With ARF Financial the owner was able to acquire the equipment without cashing cash flow crunch. He continues to keep a line of credit open with ARF Financial in case emergency funds are needed in the future.

>>You can read more business growth case studies here

Types of Financing For the Growth of Your Business

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When it comes to financing your business, you have many different options at your disposal.

Here are a few that ARF Financial offers for business owners who are ready to take advantage of growth opportunities!

Working Capital Loan Benefits:

  • FDIC-insured bank loan
  • Less than perfect credit is not a barrier
  • Flexible terms up to 18 months

>>Learn more about Working Capital Loans here

Lines of Credit Benefits:

  • Access to 5 separate loan drafts
  • No application, maintenance or access fees
  • Abbreviated underwriting
  • Fax-able drafts for ease of submission

>>Learn more about Lines of Credit here

Bridge Loan Benefits:

  • Based on your total annual sales not just credit card sales
  • No penalty for paying off the bridge loan early
  • Low interest rates compared to competitors
  • Tax returns and financials not needed on amounts up to $300,000
  • Loan amounts of $500K per entity or up to $750,000 for multiple entities

>>Learn more about Bridge Loans here

Mezzanine Loan Benefits:

  • Payments won’t increase when your revenue does
  • Fast approval process (within days)
  • Interest is tax deductible

>>Learn more about Mezzanine Loans here

Would you like to explore financing options to scale your marketing campaigns? ARF Financial is a lender you can trust. We have a quick and simple funding process. Contact us today to learn more.