Is your business in need of capital for expansion? Are you considering all options with the idea of finding the method that will put your company in the best position to succeed?

If you find yourself in this spot, there are steps you should absolutely take as well as things that you need to avoid.

Before we get into the three best ways to secure business capital for expansion, we want to mention something you should never consider: a deal with a loan shark.

These lenders appear to have everything you’re looking for, including lots of money that is available in a relatively short period of time. However, the problem with this is the high interest rate and the lack of a formal agreement.

Sure, a loan shark can lend you money when you need it. Even so, the interest rate will work in their favor and the overall safety of the transaction will leave a lot to be desired.

With all that out of the way, here are three of the best ways to secure capital if the time comes to expand your business:

• Bank loan. Why turn to a loan shark when you can work directly with a legitimate lender? This will give you a variety of options, as well as peace of mind.
• Credit card. It’s not always the right approach, but a credit card can help you access money without delay.
• Friends and family. If there are people in your life who are interested in investing in your business, don’t hesitate to present them with an offer.

Business expansion can be one of the best moves you ever make in regards to your professional career. As long as you know where to get the capital you need, you won’t find yourself making a mistake that could backfire in the future.

Have you expanded your business in the past? Where did you turn for funding?

Are you in need of money? Are you interested in getting your hands on cash in a hurry?

If so, it’s likely that you’ll begin to consider your many options. For example, you may turn to your credit card. Or maybe you ask a friend or family member for a loan.

In the business world, when you need cash fast there are a variety of places to turn. Unfortunately, some people talk themselves into thinking that it’s a good idea to strike a deal with a loan shark.

Here are several reasons why you may try to talk yourself into a deal with a loan shark:

1. It’s Fast

When compared to a traditional bank loan, for example, a loan shark can fund you in less time. For many, this is like a dream come true.

Of course, there is more to taking a loan than speed. You have to consider what you’re giving up by getting involved with this type of relationship.

2. Less Paperwork

Loan sharks don’t require that you fill out a long and detailed application. Instead, all they care about is lending you the money and charging a high rate of interest.

Once again, this may look good on the surface, but it will actually work against you in the long run.

3. More to Come

Loan sharks are notorious for telling you that they’ll loan more money if you need it in the future. While this may be true, it will come at a cost. After all, this is how these people make their money. They charge a high rate of interest and use scare tactics to ensure that you pay on time.

Although you may be tempted by a loan shark, don’t talk yourself into this relationship. Instead, seek a more legitimate opportunity. By doing so you’ll feel much better in the end.

With the year coming to an end, it goes without saying that you’ve turned your attention to 2017. For many, this means setting both individual and business related financial goals.

If you found it difficult to locate a legit lender in 2016, there’s time to change your fortunes in the new year.

Rather than assume that working with a loan shark is your only option, here are three steps you can take to connect with a more reputable lender:

1. Go Online

With so much technology at your fingertips, you might as well take full advantage. When you go online, you can learn more about every lender imaginable.

Best yet, you can read reviews from other consumers, check financial ratings, and make sure that the lender is 100 percent legit.

2. Ask Questions

Believe it or not, many people get tied up with a loan shark without ever really knowing what they are doing. They have their sights set on one thing and one thing only: getting their hands on more money.

While it’s okay to be ambitious in regards to what you want to accomplish, you don’t want to do so at the risk of making a poor decision.

By asking the right questions at the right time, you can easily differentiate a loan shark from a legitimate lender.

3. Be Patient

If you get too far ahead of yourself, if you begin to rush the process, you could soon find yourself making a decision just to do so. You know you need money now, so it’s only natural to feel desperate.

Don’t let this happen to you. Even if you’re in a hurry for a loan, such as to start a business, you need to exercise a high level of patience.

By taking these steps in 2017, you’ll find yourself on the path to locating a legit lender that can help you reach all your financial goals.

As a small business owner, there may come a time when you need to raise capital. There are many ways of doing so, all of which you need to consider.

Unfortunately, some people begin to believe that a loan shark is the best option for them. As a result, they move in this direction, just to realize soon enough that it was a mistake.

There’s nothing wrong with wanting to grow your business. Conversely, you need to be smart about the financial decisions you make. Here are three reasons why you should avoid a loan shark, and instead opt for a more traditional method of borrowing money:

1. The Interest Rate

Nobody wants to pay interest on a loan, but this is something you’ll need to get used to if you’re borrowing money.

The problem with a loan shark is this: the interest rate is above and beyond anything you would reasonably expect from a bank. As a result, the cost of borrowing is much greater.

2. Trouble if you can’t Pay

There’s no denying the fact that you have every intention of paying back your loan in full and on time. However, if for some reason you miss a payment or slip behind, you don’t want to be working with a loan shark.

As a “lender” with no regulations, you could find yourself facing a variety of intimidating collection tactics.

3. No Financial Benefits

When you use a business credit card, when you take out a bank loan, it can help build your company’s credit and boost your credit score.

With a loan shark, this never comes into play. Sure, you can access the money you need, but it’s not helping you advance your financial standing in regards to your credit.

If you have dreams of growing your business, don’t get too far ahead of yourself. Take your time, consider your options for borrowing money, and then make an informed decision.