Starting or growing a new business can be challenging, and so is securing access to funding. Whether your venture specializes in fire protection services or equine performance and rehabilitation, there are several financing options to help grow your niche business. 

Here are seven options you should keep in mind when looking to scale your business.

1. Small Business Administration (SBA) Loans.

Small Business Administration (SBA) Loans are one of the most frequently used small business funding options. These funds, provided through the U.S. Small Business Administration, rely on a network of smaller lenders. Because small companies have varying needs, there are several loan types, including:

• SBA 7(a) loans can be used for business transactions that lack collateral, such as business acquisitions or partnership buy-ins or buy-outs.
• SBA 504 loans can help finance significant fixed assets, like equipment or real estate.  

2. Business Lines of Credit.

Business lines of credit are another helpful financing option for any business. This versatile loan offers access to a set credit limit that can be used as needed. By providing flexible funding, loans can help business owners seize growth opportunities, whether for long-term or short-term goals. These lines of credit can also serve as a financial safety net, helping businesses navigate cash flow or payroll disruptions.

For instance, Vulcan Fire, a Colorado-based fire protection company, went from a three to 37-person operation with multiple locations and is now one of the largest independently owned commercial fire service systems in the Mountain West region. Their impressive growth story can be directly attributed to the company’s foundation of transparency and expertise. Additionally, co-owners CJ Simonds and Todd Wagner were able to leverage their banking relationship to secure a business line of credit at FirstBank. This loan enabled the team to access the capital needed to secure large contracts—instrumental to their growth.

3. Equipment Loans.

For some businesses, such as landscaping firms, restaurants, and medical or dental offices, having high-quality and efficient equipment is essential for daily operations. However, this equipment can be quite pricey, and it’s often challenging for business owners to pay for it outright. That’s where equipment and fleet loans come in to help secure the funding for new equipment, whether it’s a replacement or brand new.

Front Range Equine Performance and Rehabilitation, which specializes in equine sport medicine and restoration, is a great example of niche businesses leveraging financing to help expand their operations. Owner Dr. Marianne Marshall-Gibson started this operation in the back of a Chevy Tahoe in Estes Park, CO. With FirstBank’s help, she was able to fund a new location and needed equipment to scale her business from a one-person operation to a nine-person team that services Northern Colorado and beyond.

4. Healthcare Practice Loans.

Medical practice loans are designed to help meet the needs of healthcare professionals, including those in medical fields such as dentists and doctors. Healthcare practice loans are available to businesses in this industry for multiple purposes unique to the healthcare profession. Some common usages of healthcare practice loans are:

• Acquiring medical equipment
• Making tenant improvements
• Working capital lines of credit to help manage cash flow
• Purchasing a new practice or expanding your practice
• Partnership buy-in and buy-out programs

5. Acquisition or Expansion Loans.

If your business is poised for growth—whether through expanding your product line, increasing your staff, or moving to a larger space—acquisition and expansion loans can help you do just that.

• Acquisition loans are helpful if one business wants to buy another. This type of loan typically involves collateral such as inventory, fixed assets, working capital, or real estate.
• Expansion loans, alternatively, are used to help businesses grow. Whether it’s reinvesting in your own company, hiring more staff, or purchasing new things for the office, this loan can help support growth goals.

Check out “8 Signs Your Business is Ready to Expand” at efirstbankblog.com to see if business expansion is in your future.

6. Commercial Construction Loans.

Commercial construction loans are short-term loans designed to finance the construction or renovation of commercial properties. These loans can cover a wide range of expenses including hiring new construction workers or purchasing construction materials and equipment. Alternatively, they can be used to fund the development of properties for business purposes such as office buildings, shopping centers, mixed-use developments, apartments, or condominium projects. 

7. Owner Occupied Real Estate (OOCRE) Loans.

If you plan on occupying 51% or more of your property’s space, an OOCRE loan may be an option. This loan allows you to purchase, renovate, and refinance your commercial property. Additionally, leasing out unused space can help create additional income streams and cash flow opportunities.  

For example, Roots and Mane—Lone Tree’s leading luxury salon—leaned on its relationship with FirstBank for financial support and resources needed during a critical growth phase. Co-owner Marissa Harmon secured a nearly $400,000 commercial real estate loan to purchase the salon space, formerly a gym, and renovate it into the bustling hub of beauty and relaxation you see today.

The bottom line.

Whether you’re looking to expand your operations, cover unexpected costs, or need extra funds to keep your business afloat, a loan is one solution. However, business owners should always research, compare, and consult a business advisor to find a loan that helps their niche business grow. For more tips and tricks, visit our Business Success page at efirstbankblog.com.  

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FirstBank determines actual loan qualification only after receipt of a complete loan application and analysis of pertinent information, such as (but not limited to) credit history, income documentation, and property valuation. Subject to approval. Fees and restrictions may apply. See any FirstBank location for complete details.