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Using leveraged debt to grow and protect your business can be a clever move when employed correctly. Having access to capital could enable you to scale operations, acquire another business, or enter a new market.
Small Business Administration (SBA) loans are one of the most powerful tools for this kind of growth. At Business Funding Group LLC (BFG), we help profitable small businesses leverage debt and obtain the capital they need to grow.
Why Leverage Debt Instead of Bootstrapping Growth?
Profitable businesses can choose between reinvesting revenue and accelerating growth through strategic borrowing. Leveraging debt can be the preferred option for many small businesses because it preserves cash flow, meaning that instead of draining your savings, you can spread your costs out over time.
Accumulating debt also enables you to invest in growth opportunities and to remain competitive without taking a huge risk. Leveraging debt for business growth and protection means making intentional, informed moves with a clear return on investment.
Effective Ways to Use Debt for Growth
Our clients often use their SBA loan proceeds to:
- Acquire another business to expand services or add new revenue
- Invest in infrastructure such as upgraded technology, office space, or new equipment
- Enter a new market
This is strategic borrowing for asset protection and business expansion. Business owners leveraging debt are not using debt as a lifeline, but rather taking proactive steps to grow their client base, be more competitive, and increase profitability. With the right SBA loan, you can even access working capital on top of a business purchase price, a unique advantage we help our clients achieve!
Debt Can Be a Hedge, Not Just a Bet
Many business owners incorrectly think that a loan is only for when things go wrong or as a last resort. However, using debt to grow and strengthen your position can protect your business long term.
Businesses can do this by:
- Diversifying income
- Building resilience by upgrading systems or equipment
- Increasing margins through efficiency investments
When a small business is growing, it is a good idea to build a buffer against future risk. Responsible leveraging is not about taking on unnecessary risk but rather reducing your exposure.
We Are Experts, So You Do Not Have to Be
At BFG, we know all there is to know about SBA loans. If your business is in a niche industry, like law or e-commerce, we already speak your language.
We have helped businesses use SBA financing for growth and protection to:
- Open a second location
- Upgrade from a home office to commercial space
- Acquire a smaller competitor
- Launch a new product line or service
Our knowledgeable team can guide you through forms, deadlines, and lender expectations, helping you avoid common pitfalls that could derail SBA approval.
General SBA Loan Requirements
Requirements for SBA loan eligibility include:
- A demonstrated ability to repay the loan
- Good credit scores and credit history, both personal and as a business owner
- Being a for-profit business operating in the U.S.
- Meeting business size standards established by the SBA
If you are unsure whether or not your business qualifies for an SBA loan, reach out to us. We can help you assess your eligibility and show how leveraging debt could strengthen your business.
Contact BFG to Learn About Leveraging Debt for Business Growth and Protection
Using leveraged debt to grow and protect your business is more than just a financial tactic. It is a long-term strategy that could help your business expand and stay competitive.
Contact our office for a free 10-15-minute consultation or fill out our online application form to discuss your financial goals and loan eligibility and begin assembling a loan package to suit your business needs.