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Scaling Your Business With The Right Funder

Scaling Your Business With The Right Funder

A crucial stage in the development of any small business is scaling. When a business needs to grow to accommodate things like an increase in service or product demand, it can often fall outside of the company’s set budget and in turn put unnecessary financial pressure on the budding small business. Many companies will seek out additional fast, small business funding as traditional funding methods are no longer considered the most viable option for all businesses, and alternative funding can help their business grow regardless of any prior budgeting. However, scaling your business with the right funder is essential to hitting your growth targets successfully.

Also read: Why You Should Apply For Same-Day Business Funding

How do you scale your business with the right funding partner?

A funding partner is an entity that supplies businesses with the required funding needed to foster their growth. Businesses typically look for funders who genuinely take an interest in their development and find pleasure in their triumph. Ideally, you want to build a long-term relationship with a business funder whose vision, ethics, and values coincide with your own.

The number of possible funding partners available to a growing business can feel overwhelming but ultimately your funding partner and you must have the same objectives for your business – just as in any other successful collaboration. The following list of factors can be used as a general guideline when looking for a funding partner to scale with:

They’re familiar with your target market:

A funder’s success is based on your business’s success, and most funders will only agree to partner with you if they have a decent understanding of your target market and can then make a judgment on whether or not your product or service will be well-received by that market.

Knowledge of your service or product:
Besides having faith in the potential of your growth, the right funder will also have a basic knowledge of your industry, services and products.

The right partner has the long game in mind:
The right funder will share your commitment to your business’s long-term success. Building a strong and loyal working-relationship with your funding partner will be mutually beneficial and allow for consistent growth within your business.

Traditional vs Alternative Funders

Collateral as security
Traditional funders may require some sort of collateral such as real estate, vehicles, equipment etc. that they will place as security against the loan should you default on any payments. Whereas alternative business funders won’t necessarily need security in the form of collateral, which gives the business owner the freedom to liquidate any of their assets should they feel it’s beneficial to the business.

Early settlement
When paying back the loan, traditional funders will often base their profits off of the loan being paid back in full, which in turn could make it difficult for a business to settle their loan early. Alternative business funders allow for the borrower to pay back the loan as and when they need to, making scaling your business easier and less restrictive.

Restrictions and control over your spending
Traditional funders may place certain restrictions on how a business utilises the funding, which may not work for a lot of businesses seeking out additional fast, small business funding . Alternative business funders are less likely to place any restrictions on the funding, which gives small business owners the freedom to use the additional funding in a way that they see most beneficial to the growth of their business.

Also read: The Growth Of Small Business Funding

As we’ve said before, it’s always of the utmost importance to do extensive research into the best business funding options for you. There are countless reasons to seek alternative business funding, and our goal at GroWise is simple, to get your business funded and growing, fast.

How To Qualify for Same-Day Business Funding

Looking for fast, small business funding? In order to qualify with us your business needs to be CIPC registered for over 6 months, have a minimum monthly turnover of R35 000, and utilise a business bank account. Apply now and get access to same-day business funding of up to R3 million in under 24 hours : Apply here.

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