Are you experiencing increased foot traffic or an uptick in online sales? You may be growing, which is an achievement every business strives for, but growth can also be challenging, constraining your cash flow while requiring capital to sustain. A temporary loan or factoring agreement may help push your company over short-term capital hurdles toward long-term success. Let’s explore five key signs your business is growing and when it may be time to seek alternative lending help.
#1 You Need to Hire More Employees
The need to expand your team to meet increased demand indicates your business is growing. Knowing when to hire is also critical to balance your budget. To manage cash flow and team growth effectively, consider the total cost of hiring an employee, including training, equipment, taxes, and payroll costs.
An alternative lender can typically provide solutions based on your company’s potential. By projecting the potential revenue generated by hiring additional help, they can help determine the best time to expand your team that aligns with your cash flow needs. A non-traditional loan may help you temporarily cover recruiting, salary, or benefits expenses as your operations stabilize.
#2 You’re Experiencing Rapid Revenue Growth
Steadily increasing revenue is a strategic business goal requiring careful cash flow planning. While welcome, rapid growth often requires investing in additional team members, equipment, inventory, marketing, and other initiatives to maintain the momentum. Those strategic investments can start to strain capital and impact short-term profitability.
Alternative lending may be a suitable solution, as it’s designed to help business owners scale and pursue timely opportunities without disrupting day-to-day operations.
#3 You’re Launching New Products
If you’re rolling out new products or services to meet demand, your business may be growing. Expanding your product offerings is a proactive approach that involves research, development, manufacturing, distribution, marketing, and more to kick off.
As we like to say, alternative lending is the bridge, not the anchor. It allows you to temporarily meet your everyday needs while you innovate, develop partnerships, and present new products to your customers.
#4 You’ve Identified a New Target Market
Expanding into new markets or pursuing new target audiences indicates your business’s success, as more people become aware of your brand and offerings. Whether your business is planning to cross state or international lines or has found a new niche demographic, you may need to allocate resources for market research and other localized efforts.
Alternative lending solutions provide peace of mind and reliable access to capital, helping you focus on your long-term vision while fulfilling your standard expenses, such as paying your employees and vendors.
#5 You Need More Business Locations
If you’re considering opening a new location or distribution center, or partnering with a retailer, your business is probably growing. An expanded footprint indicates demand and confidence in your business’s future, especially if more places want to sell your product. Expanding geographically typically requires substantial upfront costs for buying real estate, hiring staff, and ordering inventory.
Alternative financing can be tailored to your needs, whether you are pursuing a short-term investment or long-term efforts that significantly impact your bottom line. Flexible lending solutions can help fund expansion projects without straining your cash reserves.
It’s crucial to know when to seek financing help to sustain momentum during periods of growth. Whether expanding your team, launching new products, or moving into new markets, alternative lending can provide the non-dilutive capital you need to scale and seize strategic opportunities. We’re committed to helping your business at every stage of growth. Contact us to learn more about how we can help and to find an alternative lending solution tailored to your needs.