Funding Stages


This stage is all about planning. Build your business plan and funding strategy while preparing to launch your business. Explore different types of funding that you may need at future levels and find out what steps you’ll need to take to secure that funding.


Sources for startup funding may include personal and family assets, business credit cards, outside investors, and microlenders. Lenders prefer to work with entrepreneurs who are invested in their businesses. By investing your own money, you are demonstrating your commitment to make the business succeed.


In this stage, it’s important to have flexible and reliable funding. Take advantage of opportunities to grow, but be aware of the limitations of your resources. Consider these funding options: business line of credit, equipment and vehicle finance loans, business loans, and an SBA 7(a) loan.


In this stage, your focus is staying ahead of the competition and constantly improving your product or service. Don’t get stuck in financing that was designed for your startup. Assess existing loans and other debt and determine of what is best for your business long-term. This is the time to consolidate debt, refinance equity, or consider opening an equity line of credit or a loan.


dcs_8036Most businesses rely on financing for expansion. Whether you are funding a new product line or moving to a bigger location, it’s important to have a realistic grasp on your margins and cash flow before looking at funding options. Explore business real estate financing, business term loans, SBA 7(a) and SBA 504 loans, and equipment/vehicle financing in this phase.


When you prepare to transition your business to new ownership, it’s vital to consider your business’s value. Work closely with the new owners to resolve ongoing financing needs and debt management.

Frequently Asked Questions About Business Financing

How can I pay for everyday business expenses?

A business credit card is a convenient alternative to cash, checks, and personal credit cards. Look for a business credit card that offers no annual fee and an interest-free grace period of at least 21 days.

Where can I find funds to help grow my business?

A business line of credit offers access to funding when your company is approached with unexpected opportunities. This option provides short-term working capital for cash flow needs such as seasonal purchases, inventory, and payroll.

My business is ready to expand. Where can I find funding?

A business term loan provides predictable repayment terms while allowing you to expand your small business. Term loans do not require collateral and come with fixed rates based on the term length and your credit history.

How can I finance a vehicle or equipment?

Banks often offer specific types of loans for equipment. If you’re considering adding equipment, look for a loan that provides a competitive fixed interest rate without application fees or prepayment penalties.

Can I buy or refinance property?

Purchase, refinance, and equity loans offer terms that could lower your monthly payments. Using your commercial or investment property, you may be able to secure a line of credit at a low cost for your business’s operational needs.

How can I find a finance option with a longer repayment period?

Ask your lender about U.S. Small Business Administration (SBA) loans. These loans offer favorable terms, including a longer repayment period or lower down payments. The SBA guarantees a portion of the loans for qualified businesses. Look for an SBA-preferred lender who offers both SBA 7(a) and SBA 504 business term loans.

For more information, visit these helpful sites:

Wells Fargo Works U.S. Small Business Administration