Expansion financing is capital for business growth.
Expansion financing is used for companies that are in a position where they need to expand, or want to expand and they need the extra capital to do so. If the market conditions are right, it can be a great move for a company to expand. Some businesses find themselves in need of expansion financing as soon as possible because of how rapidly their business is growing.
Flexible term financing is typically available for a variety of business expenses. These include leasehold improvements, hiring additional staff, new and used equipment, construction costs, marketing costs, real estate acquisition, etc.
In order for a business to get approved for expansion financing they should be focused and have a detailed plan in place for the lender to see. This should be a complete business plan that captures the attention of the lender right off with a well written executive summary at the beginning. This is the first thing the lender will see, and will determine whether or not the rest of your loan gets considered.
Additional information that should be included is the names and brief resumes of each of the company’s key staff including Owner, President, Management, etc. On top of that information lenders will also consider the strategic position of the company or the information on what the market can offer. Also be sure to include in the plan the exact amount of funding needed, and exactly how that money will be allocated and spent.
These are just a few of the factors that lenders think are important. For a more in depth overview we recommend you consider our Business Finance Coach which shows you step-by-step how to obtain business capital.
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