In businesses with ambitious development plans in their niche market, expanding their market share or portfolio of activities, the availability of fresh working capital is at the heart of success. Sometimes, in order to achieve our goals, we need to use external funding . Here are three situations where this is a common and extremely successful financial strategy.
Expanding core business
In the life of every business leader comes a moment in which he is going to make an important decision . His business has already grown to such an extent that new means are needed to cover current costs – the expansion of the warehouse, the purchase of new equipment and machinery, as well as the expansion of the core business, the inclusion of new markets and the increase of Client base. For example, if you are engaged in landscaping and your clients are no longer just private individuals – property owners, but you are involved in public projects that include maintenance of public spaces, buildings, businesses and even entire neighborhoods, it is time to think about – serious investments in equipment that will allow you to run these projects more efficiently and qualitatively , and from there to ensure the expansion of your business. Sometimes orders are quicker and more urgent than the funds available for their execution, and the payment is only due after the project has ended, even quite often months later. So you need to seek bridging funding to help implement the project and secure the future of your business.
Change in the direction of business
Sometimes we have to change the direction of our core business. More often, the change is accompanying – if you are a farmer and your main activity is the production of animal feed, it is very likely that your professional path also faces you with opportunities to change the direction of the business to livestock breeding. This would mean almost completely refreshing your resources , such as equipping the available base, hiring team specialists, training and retraining current employees, buying animals, building a farm. You will need to be flexible in terms of available funds and resort to new ones in the form of external financing . At the end of the project, of course, if you set your priorities right, not only will you be able to repay the credit but you will have made a successful turn in the way of your business while you have managed to grow.
Construction of a new site
The most common need for fast working capital is observed in construction. You have been eligible for construction, but you have not yet sold all available apartments in the future building. You are convinced that you will not have problems in this direction as the construction is in a sought-after area, and the interest in buying new homes anywhere around it maintains a high rating and this trend will remain in the coming months. You’re sure you will not have the trouble to regain the investment with a substantial margin of profit and take a bold first sod. Only available means to implement the project suddenly prove to be extremely inadequate. The same is true if you are about to finish an already started site – somewhere along the way there is a strong need for new funds, and you are committed to deadlines for already purchased apartments in the future building owners. And here is the external financing – your rescue belt in a difficult time. Partner your business on the road to achieving the ultimate goal.
Who to trust
The existence of non-bank financial institutions in lending to corporate clients increases the competitiveness and, hence, the various, convenient and flexible opportunities for business representatives. Prospect Capital offers business lending from BGN 100,000 to BGN 1 million and provides fast and easy application procedures – no complicated forms and documentation, no bureaucracy, individual repayment schedule, and approval within 48 hours after the information originally provided. The company offers stable support for business in the most difficult and key stages of its development.