Once your business is established, the number one issue that SMBs have is the lack of growth capital; this is the reason for the existence of so many credit unions and community banks – as well as other lending institutions, of course. To help you get that often very necessary infusion of new cash, we’ve compiled a short selection of the best options for securing growth capital.

Invest Your Own Hard Cash

Although this is one of the most difficult ways to obtain growth capital, it’s also one of the best – you don’t have to worry about loans and interest payments, and time isn’t as much of a hindrance as with the latter options. Most businesses have to use this option at least a little bit, since you can rarely obtain loans for everything.

Consider Venture Capital

If cash is hard to come by, and you have a promising idea and proof-of-concept ready-made, then a venture capital firm might be your best bet for acquiring growth capital. The beauty in this arrangement is also the potential downside: you get their investment in exchange for equity. That means no interest payments; but it also means you are now part-owner of your business.

Borrowing Hard Cash as an Option

It is for this that banks, credit unions and lending companies exist: the added benefit is that they have no vested interest in how you use the funds (which means control is totally yours), just in your ability to pay back. If you need a few months to raise your credit score, it’s advisable to take it – you will get better interest rates on loans in the long run. The drawback to loans, of course, is how burdensome they can become if profits decline or are slow to activate.

Help From Above? Angel Investors

Although a bit tongue-in-cheek, the angel investor really is an exceptional option in this spate of options for acquiring growth capital. These are wealthy persons who take a direct interest in your business and provide both capital, as well as contact and suppliers that would be difficult to get with otherwise. Like venture capital firms, they usually want equity, of course.