Your business is doing well. So well, in fact, that you have to buy more stock to meet demand, hire extra staff and move to larger, more expensive premises. This is all good news… until you realise that you simply don't have the cash in your business to sustain the growth you want to achieve. So how do you fund your expansion? Businesses in this position have two finance options to choose from: equity or debt.
Equity finance is when a third party buys a share of your business, injecting cash that will allow you to make the investment needed to achieve your goals. You do not have to pay the investor back, but they will own a portion of your business, giving them a say in the way you run it, and you may need to pay them a share of your profits.
Debt financing, typically a loan from a bank, does not require you to give up any of your business. But funding your growth in this way means you will have to pay all the money back, plus interest, and you will probably have to provide security for your loan. Bankwest has a range of short and long-term loan facilities to help your business grow – from Business Overdrafts and Credit Cards to Edge Loans, Equity Lines, Commercial Advances and Fixed Interest Commercial Loans.
If you are unsure about the best option for your business, a Bankwest Business Specialist can help you make the right choice.