Last year over 63% of SME's sought out some form of commercial funding. That number is up from previous years. More and more companies, established and startup, are looking for access to capital. Be it to expand, purchase equipment, for whatever project, they're looking for flexible financing and favorable terms. So what do some of the more established businesses use the funding for…Here are just a few of the things that companies who've been in business for longer periods utilize commercial loans for.
Purchasing Assets. Perhaps one of the main reasons why established companies take out loans is to add valuable assets to their business. Whether equipment, machinery, technology, vehicles even real estate, buying assets with a business loan is a great way to not only grow your company but also acquire things that can potentially be collateral down the road.
Buying Another Business. Established businesses don't necessarily like to remain complacent. That said, we've worked with many companies looking to expand by way of buying out a competitor or another company that perhaps manufactures products relevant to their core line of goods and services.
Debt Restructuring. Having debt is not always a bad thing. Even more established companies will have debt—sometimes a significant amount. Consolidating loans and/or refinancing is a great way to lower monthly payments and streamline the number of transactions you have regularly.
Roll Out New Products. Growth is about broadening your portfolio. Many businesses will take out a commercial loan or line of credit to roll out a new product. From the manufacturing to the marketing, they require cash to ensure that the rollout is a smooth one.
If you need money for any type of project—equipment purchases to hiring personnel—First Union has a solution that fits your company's needs. We've worked with numerous small businesses across the country and we love to see our clients succeed. Call today and let's get started together!