Small Business Loans

How to finance a growing company?

Learn about small business financing options

Running and expanding a small growing business often requires a little extra financial assistance. Getting a small business loan or grant can help you fill the gap when you need to make capital investments, grow your workforce, or move to a larger space.

To help you decide what type of financing might be right for you, here are some great small business financing options:

Credit line:

Using a line of credit as working capital can make it easier for you to manage your cash flow when your income or expenses fluctuate. It allows you to borrow only the funds you need, allowing you more control over the amount of interest you will accrue.

Business loans:

For larger investments, it might be time to get a fixed-term loan. Like a home loan or personal loan, fixed-term loans include fixed interest rates and monthly payments over a period of years. Unlike a line of credit, a business loan will provide you with a large sum of cash up front. These loans can be ideal for expanding your space or financing other major investments.

Commercial loans: 

For established businesses that own commercial real estate, a business loan is another option. Like a home equity loan, a business loan allows you to borrow for the equity in your business property. Depending on the value of the property and the net worth you have, this could mean more debt capacity.

«For larger investments, it might be time to get a fixed-term loan.»

Equipment loans:

If you need cash specifically to finance the purchase of new equipment, including vehicles, manufacturing or production machinery, farm equipment, or other necessary equipment, then an equipment loan or leasing program might be what you need. Like business loans, equipment loans offer fixed interest rates and payment plans over a period.

Loans guaranteed by the Small Business Administration (SBA). SBA-guaranteed 7 (a) loans have longer repayment terms and lower down payments than most conventional bank loans, and can be used for the purchase of owner-occupied real estate, business acquisitions, purchase of equipment or working capital. Wells Fargo also offers the SBA 504 program for construction or larger fixed asset purchases.

Federal or state grants:

 Small business grants – money that does not need to be repaid – are limited and more difficult to obtain than loans. Federal and state business grants are funded by taxpayer money, and the money is awarded through a complex legislative process. For more information on getting a small business grant.