Growth capital is the money you borrow for the growth and overall profitability of your business. There are many forms and structures of growth capital, including term loans and lines of business credit.

Growth capital is mostly structured as long-term loans, which helps to create an effective payment plan. However, short-term growth capital can be structured if there’s an opportunity that makes financial sense and you don’t want to miss out.

Here are ways you can get growth capital for your business.

1. Pump in Personal Investment

As a business owner, you must have some capital to invest in your business to grow it. You will rarely get all the capital you need for growth from outside sources. Investing personal capital also shows external investors that you have confidence in your business, and they can therefore chip in to help.

2. Borrow Some Funds

Once you start a business, debt is inevitable if you ever desire to grow your business. Borrowing funds, using them effectively, and paying them on time sets your business in a strategic position to receive more funds in the future for even bigger growth.

3. Seek Funding from Venture Capitalists

Venture capitalists will invest in your business if you show a strong potential for growth or when you are just getting started and have expressed a strong will to succeed. Settling for venture capital is a great option, especially if you are new to the business. The conventional lending options are not willing to offer loans or invest in your business.

Accepting venture capital will also mean accepting the investor to take a key interest in your company’s direction. At times the firm may send a representative to sit on your board and follow your company’s progress.

4. Get an Angel Investor

An angel investor is an accredited individual who has a net worth exceeding $1 million or has a yearly income of more than $200,000. An angel investor may work alone or may team up with other investors to create a fund. You can get enough capital from an angel investor to support your business growth without having to get to the bank or other lending options.

Do You Need Growth Capital for Your Business?

Knowing the tips to use to get growth capital for your business, you cannot step down on your growth plans. Contact Coastal Commercial Lending for a business loan that will help you steer your business to greater levels.