> ## Content Index > Fetch the complete content index at: https://blog.financely.io/llms.txt > Use this file to discover other available public pages before exploring further. # Growth Financing for Companies: Options, Uses and Lender Criteria - URL: https://blog.financely.io/growth-financing-for-companies-options-uses-and-lender-criteria/ - Published: 2026-10-20T08:25:36.000Z - Updated: 2026-10-20T08:25:36.000Z - Description: Growth financing explained: term loans, asset-based lending, revenue-based debt and growth equity, how to match each to your plan and what lenders check. - Author: Financely Debt Advisors - Tags: Growth Financing ## Growth Financing: How Companies Fund Expansion Without Stalling Cash Flow Growth financing is capital raised to expand a business that already works. It pays for new markets, more capacity, larger orders, hires and acquisitions before the extra revenue arrives. The right structure depends on what the money is for and how the business earns. This short guide covers the main growth financing options, what lenders look for and how to match the capital to the plan. In this article 1. [Growth financing options](#gf-options) 2. [Matching the capital to the use](#gf-match) 3. [What lenders look for](#gf-lenders) 4. [How Financely helps](#gf-financely) 5. [Frequently asked questions](#gf-faq) ### Growth financing options Most growth financing falls into four groups. Many companies combine two of them. ### Term loans and growth debt Senior or unitranche loans from banks and direct lenders, sized on cash flow and repaid over several years. The cheapest option for profitable companies. See our guide to [business expansion loans](https://www.financely-group.com/business-expansion-loans-financing-solutions-to-scale-your-company?ref=blog.financely.io). ### Asset-based lending A revolving facility secured on receivables, inventory or equipment that grows as the balance sheet grows. Read more on [asset-based lending](https://www.financely-group.com/asset-based-lending-flexible-financing-using-company-assets?ref=blog.financely.io). ### Revenue-based and venture debt Lending to fast-growing companies with recurring revenue but limited profits, repaid from revenue or alongside an equity round. More expensive, with fewer covenants. ### Mezzanine and growth equity Junior capital or minority equity for larger plans that senior debt cannot fully fund. Costs more, or dilutes ownership, but adds flexibility. ### Matching the capital to the use | Use of proceeds | Usual fit | | -------------------------------- | ---------------------------------------------------------- | | Larger orders and contracts | Asset-based lending, receivables or purchase order finance | | New equipment or capacity | Term loans or equipment finance | | Hiring, product and market entry | Revenue-based or venture debt, or growth equity | | Acquisitions | Term debt with mezzanine or seller financing | Funding long-term growth with short-term working capital lines is one of the most common causes of a cash squeeze. Match the tenor of the capital to how long the investment takes to pay back. Our guide to [working capital facilities from alternative lenders](https://www.financely-group.com/how-to-get-working-capital-facilities-from-alternative-lenders?ref=blog.financely.io) covers the short-term side. ### What lenders look for **Proof the model works.** Recurring revenue, healthy gross margins and customer retention. **A clear use of proceeds.** A specific plan showing where the money goes and when it starts to produce cash. **A model that repays the debt.** Forecasts with downside cases that still cover interest and repayments. **A team that has done it before.** Management with a record of executing growth. Our [lender-ready package checklist](https://www.financely-group.com/lender-ready-package-checklist-for-private-credit?ref=blog.financely.io) lists the documents to prepare. ### How Financely helps Financely is a debt advisory and arranging firm, not a lender. We assess your growth plan, design the right mix of growth financing and run the process with lenders from our network of more than 12,700 verified capital providers, including through our [private credit placement](https://www.financely.io/private-credit-placement?ref=blog.financely.io) service. Our fee is a one-off retainer, set out in writing before you commit. ### Raising growth financing? Send us your company profile, your growth plan and the amount you need. We will set out the structure we recommend, the scope of work and our fee. [Request a Quote](https://www.financely-group.com/requestaquote?ref=blog.financely.io) ### Frequently asked questions What is growth financing? Growth financing is capital raised to expand an existing business, for example to enter new markets, add capacity, fund working capital for larger orders or make acquisitions. It can be debt, equity or a mix of both. What is the difference between growth financing and growth equity? Growth equity is one form of growth financing, where investors buy a minority stake. Growth debt, asset-based lending and revenue-based finance fund expansion without giving up ownership. What do lenders look for in a growth financing request? Recurring revenue, gross margins, a credible use of proceeds, a model showing how the new capital produces cash to repay it, and management with a track record of executing growth. Is Financely a lender? No. Financely is a debt advisory and arranging firm. We structure growth financing and arrange it with lenders from our network of more than 12,700 verified capital providers. This article is for general information only and does not constitute legal, tax or investment advice. Financely is an advisory and arranging firm, not a lender or broker-dealer. Any financing is subject to lender underwriting, due diligence, credit approval, documentation and conditions precedent, and no outcome or closing timeline is guaranteed.