A guide to business expansion finance
If your business has enjoyed sustained growth in the past few years, you are likely to consider ways of expanding your operations.
By expanding your business, you may aim to attract more customers, increase sales and, so, make a greater contribution to the bottom line profits of the whole enterprise.
Why you may need business expansion finance
Opportunities for business expansion may present themselves in a number of ways
- you have identified new, previously untapped markets into which you want to expand;
- you see market opportunities in diversifying the range of goods you are currently selling;
- expansion of your business might allow you to trade internationally – importing from foreign suppliers at more competitive rates and exporting your wares to a considerably broader foreign market;
- through additional research and development, you believe you may enhance the quality and value of the products you sell;
- relocation of your business premises to a different part of the country might allow for expansion in an area where costs are lower and output heightened; or
- there may be opportunities for hiring additional staff to help push forward your expansion plans.
Whilst all of these may be great opportunities for your business, additional working capital is likely to be needed in order to put them into action. That additional funding may come from business expansion finance.
Types of finance available
Business expansion finance may come from a number of sources, but the following may be of particular interest:
- equity release is not only for owner occupiers of private residences, but solutions are also available for commercial property;
- if you have owned your business premises for a number of years, have paid off the greater part of any mortgage balance and the property has increased significantly in value, equity release may unlock the cash tied up in the property, yet still allow you to continue to occupy and run your business from the premises;
- if you have ever watched the popular television programme, the Dragon’s Den, you will have seen real business angels in action;
- in fact, there are an estimated 18,000 such angels at work in the UK – wealthy individuals prepared to invest their private funds into a business, in return for a share in the equity;
- shared equity, of course, may mean that a business angel also assumes a share of the decision-making in your business.
Why use ACF?
At ACF Direct, we have considerable experience in dealing with clients looking to expand their businesses and in accessing the funding that is needed.
Whatever the business expansion finance solution appropriate for your particular business, we are likely to identify sources offering financially attractive ways forward.
To find out more, you might want to complete our online enquiry form or simply contact us by telephone or via email to discuss your business expansion plans with us.