Every business, from a start-up cupcake selling company to an international logistics firm, requires a number of big purchases during its lifetime. Whether it’s in the early days to afford the initial equipment needed, such as computers, production gear and more, or to make other big business purchases like a vehicle, these can be high-cost. Especially for start-ups and SMEs it can result in cash flow issues, but thankfully there are a range of simple ways to ensure your business can cover those vital purchases.

Venture Capital

Provided by a collection of private investors, specialised financial institutions or investment banks, venture capital is a type of investment usually used by start-ups deemed to have strong growth potential. For new and small businesses seeking out funding to cover the costs of a big purchase, this can be a great place to start. You will need to be able to demonstrate that your business has plenty of potential and explain why the funds are required. Though in some cases you may lose some control over the company.

Asset Specific Loans

If finance is required for a specific large purchase, then seeking out an asset-specific loan could be a good idea. For example, should you need to buy a new vehicle or fleet then car loans can be the most appropriate choice. This is because they will provide an appropriate amount of funding to cover the costs of the purchase and the lender should have the knowledge and experience to ensure it remains a safe choice.

Grants

There are plenty of business grants available which can be put towards a wide range of large purchases, as long as it is for business purposes. Before applying for a loan, it is always worth checking what is currently out there and whether there are any potential grants that your company could use. With a grant there is no need to pay back what is provided, though in some cases the amount awarded may not be enough to cover the total costs of what is needed.

Credit Cards

Depending on the cost, your company may be able to use credit cards. Obviously for a new vehicle or property this isn’t feasible, but for computer equipment, furniture and other assets you may be able to cover the costs on credit.

These methods can help many companies fund the large business purchases which they need to make, so decide which option best suits your business.