Building a profitable business is a challenge for any entrepreneur. It takes a lot more time, effort and money to become profitable than many business owners realize. As a result, many businesses run out of money and shut down before they ever taste real success.

So acquiring the funding necessary for business growth needs to be one of your highest priorities.

How Debt Gives You Freedom

Many beginning entrepreneurs and small business owners believe that debt is bad and that having to make loan payments every month will make it harder for them to become profitable.

So they turn to angel investors and venture capitalists to fund the launch and expansion of their business rather than going through banks or other lenders.

But what they completely miss is the huge advantage that debt offers over business partners for business growth:

Control.

When you take on investors and business partners, you lose your entrepreneurial independence. But by taking out a business loan instead, you retain full ownership and control of your business.

Before you sign away half of your company to investors, consider how debt can actually jumpstart the growth of your business without selling a stake in your company.

Use Debt to Stimulate Business Growth

Taking out a business loan can give you the extra cash you need to purchase new equipment, build up your inventory, hire additional employees, increase your advertising budget and even open a new location. All of these can be great ways to grow your business, serve your customers better and acquire new customers faster.

And as long as you manage your debt responsibly and make your payments consistently, you’ll actually improve your business creditworthiness. This will allow you to borrow larger amounts in the future and get lower interest rates too, allowing you more options for business growth.

If you are planning ways to grow your company and need additional funding to put those plans into action, contact KPI Commercial Capital today for more information.