Bigger is often better, especially when it comes to growing your small business. However, your business may not have enough working capital readily available to take advantage of potential growth opportunities.
Fortunately, there are many funding options that you can tap into to jumpstart your business expansion. A business expansion loan can be used to achieve various goals, such as moving into a new facility or remodeling an existing location, acquiring another business, updating technology, or Introducing new products.
If your business has a stable cash flow and a solid growth strategy, now may be a perfect time to invest in the future of your company. Take these helpful steps below before applying for a business expansion loan.
Revisit Your Business Plan
How did you start your company? After all, it is difficult to move forward without knowing where you came from. Go back to that valuable document that you first used to get your business up and running. Evaluate how much your business has evolved since then. See if there are any fundamental changes you need to make. This original blueprint can give you some important insights as you prepare for a business expansion.
Essentially, a business plan should spell out your mission and goals, make financial projections, explain what you perceive the target market to be, as well as present estimates for future sales, incomes, and cash flow for at least the next 3-5 years. In order for you to build a thriving and successful business, you will need to have researched these things in detail.
When You’re Ready to Apply for a Small Business Loan
Back in the day, applying for a business expansion loan was quite a tedious process. Beyond the mountain of paperwork, it also took an inordinate amount of time. And to get a decision could take weeks, if not months. With the emergence of alternative and online lenders, that has all changed. Applications are online and can even be completed right from your smartphone.
To get started, you will need (beyond the completed application) tax documents, bank statements, profit and loss sheets, credit score, a voided check, and probably a few other items per the lender’s requirements.
Getting approved is not guaranteed, though there are a few actions you can take to better your chances. Be organized! Have all your financials ready to go beforehand. Even the little things count, so showing a lender that you are taking this matter seriously, that you have all your ducks in a row, so to speak, certainly can’t hurt your application.
Also, make sure you’re being realistic from an economic standpoint. Don’t inflate numbers or data. You want to be honest, especially about what you can afford when it comes to the loan amount. Be conservative as far as cash flow projections.
Need a Small Business Expansion Loan?
At First Union, we’ve had the chance to work with thousands of businesses across many industries. Whatever your expansion initiatives, we are here to help! We offer a fast and easy application process, with funding in as little as two days.