5 Times You Should Consider Project Financing for Your Business
Taking on new debt is often a scary idea, but it can provide businesses with many benefits. Two of these include providing capital to make things happen and keeping company or personal assets free and protected. While project financing can always help a company, the following are five times that it could be especially beneficial.
You’re In the StartUp Phase
Startups require a great deal of working capital to get things going, and it can take a while for money to start coming in. More often than not, the founder of a startup doesn’t have the full amount of money they need. Project financing can help them get a strong start.
You’re Ready to Build
If a brick-and-mortar location is a key component of your business plan, you need the funds to build it. This might mean building a brand new structure or buying and remodeling an existing one. In either case, project financing can ensure you have the costs covered to get your location opened as soon as possible.
You’re Ready to Acquire
Sometimes the best way to expand your business and income opportunities is to acquire another company. However, it can be a costly venture – one most businesses don’t have the liquidity for. When this is the case, it doesn’t have to put a stop to the venture. Instead, acquisition financing is available to make it happen.
You Need Major Equipment
All businesses need equipment, whether it’s computers for the office, warehouse tools, or company vehicles. And that equipment has to be replaced and updated at some point. Paying for it upfront can put a dent in your assets, but financing the purchases can keep your assets free while still providing the equipment you need.
It’s Time for Major Changes
As hard as business owners try, there are times when things just don’t go as planned. Even when they do, the world is constantly changing. Methods and strategies that worked yesterday will not necessarily work today.
While small changes can make a difference for some, other times require major shifts. Some businesses find that in order to stay competitive and successful, they need to completely restructure the company. They feel it's the best way to reduce their costs, address their weaknesses, build on their strengths, and more. At times like these, project financing can help make big changes happen, often with greater results than expected.
If you’re considering any of the ideas mentioned above, our team at Capital Corp Merchant Banking wants to partner with you. Give us a call or contact us online to discuss your project and any financing options that are available to you.