How does business expansion funding work?
Expansion funding is typically a long term form of funding, primarily because expansion funding is borrowed in greater amounts. Expansion funding is typically unsecured loans, meaning that no collateral is attached when borrowing (although some businesses may need to sign a personal guarantee).
The expansion funding facilities that are available from JPM Capital are separate from existing bank loans.
What can expansion funding be used on?
Expansion funding can be used for businesses that are looking to grow or expand, this means that expansion capital can be used on a variety of options, including:
- Business refurbishment.
- Move to improved offices or business premises.
- Hire new staff or train existing staff.
- Purchase new equipment.
- Create new products or develop research.
- Acquire new businesses.
- Outsourcing work.
Why do businesses apply for business expansion loans?
Business owners that want to grow their business tend to apply for business expansion loans, especially if they’re looking to take advantage of a potential opportunity. Business growth is always the natural profession of a successful business.
Rishi Sunak announced in the Spring Budget that there will be super deductions for companies that are looking to invest in their business. This is likely going to be a powerful incentive for business owners in the UK, especially following a year of financial instability due to the coronavirus pandemic.
What other financing options can I use to help my business expand?
Asset finance is often used by businesses that need access to equipment that can help their business grow. Typically the equipment they’re seeking to access is usually expensive, but a vital necessity to help the business perform effectively.
Asset financing is typically used to help a business access equipment without making a large impact on its cash flow or working capital. Asset finance can include leasing assets (sometimes with an option to purchase) or releasing equity from a business’ existing assets which can be reinvested into the business.
There are several forms of asset finance that include:
- Asset refinancing
- Finance leasing
- Equipment leasing
- Hire Purchase
- Operating leasing.
For businesses that struggle to be accepted when applying for finance with traditional lenders, such as banks, alternative funding could be a helpful option. Alternative finance generally consists of solutions that are designed for businesses that are unable to meet the criteria needed from traditional lenders.
These funding solutions are typically specialist. JPM Capital works with a large group of partners that can provide:
- Flexible draw-down facilities
- Interest-only loans
- Personal Loans
- Bad credit loans
To learn more about the alternative finance we offer, check out our funding solutions.
What are the benefits of expansion funding?
- Flexible payment options & terms.
- Option to settle without penalty.
- Longer-term repayment available to reduce monthly commitment.
- Funding decisions typically within 24 hours.
- Separate from existing bank facilities.
- Dedicated Account Manager handing application from start to finish.
- Loans are typically Unsecured.
- E-sign documents allow for the same-day transfer of funds.
Is there any risk with expansion funding?
There are always potential risks when applying for finance, therefore it is imperative you have done the correct research and asked the right questions when applying. It is also important to borrow as much as you can afford to pay back.
One of the key risks of expansion funding is counting that your business will grow. Expansion funding is really useful for helping businesses grow, but does not guarantee success – that is down to the business owner and how much research and preparation they have done.
How can I apply for expansion funding?
To apply for expansion funding with JPM Capital, there are two options:
- The quickest way to reach JPM is by calling us at 01244 207276. You will be put through to one of our account managers who are happy to answer any questions and discuss the funding option you’re looking to apply for.
- Alternatively, you can complete the online ‘Get a quote form’ which can be found by scrolling to the bottom of the page. Once you request a quote, one of our account managers will be in touch as soon as possible to discuss your inquiry.
What types of businesses can apply for business expansion loans?
Any business looking to grow or expand can apply for business expansion loans. Typically, we receive quotes from small businesses and medium-sized businesses looking to expand, but we are also happy to hear from startup businesses and sole traders.
At JPM Capital, we work with a number of partners which allows us to find the right type of financing for different companies from all types of industries in the UK.
Why choose JPM Capital for expansion funding?
JPM Capital is a business credit brokerage, we work with a diverse panel of partners to help businesses find the funding requirement they need to help their business grow. At JPM Capital we have over 30 years of combined industry experience which we use to help businesses across the UK find the funding they deserve.
JPM Capital Finance Limited is authorised and regulated by the Financial Conduct Authority (FCA), this ensures that we meet the most stringent compliance criteria. We are also proud to be a member of the National Association of Commercial Finance Brokers (NACFB). As a NACFB member, we constantly stay up to date with the latest market developments and the latest financial products on the market.