In Australia, small businesses account for almost 98% of all businesses, contribute to 35% of our GDP, and employ 44% of our workforce. However, more than 60% of small businesses fail within the first three years. To safeguard against this, SMEs have to adequately manage their credit risk and protect their security interests. How does Read More…
Understanding your small business loan options
Wed 28 August 2019 - 12:32 pmFeatured | Finance
You can have the best business idea in the world but if you don’t understand the loan options available to you, you could sabotage your chances of success. There are all kinds of people running all sorts of businesses; not all of them have a background in the finance industry. So, when you find yourself steering a business that’s taking off, you’ll find yourself having to research a whole range of areas to source what works for you.
Finding the right finance for you is like finding the right car. You don’t know which car you want until you really pinpoint precisely which features are important to you, start asking around, doing some research and trying some out.
The truth is, there are hundreds of achievable small business lending options out there, small business owners just need to speak up and start asking to be guided in the right direction.
In days gone by, major banks held the only keys to finance. They set the rules and you had to play by their rulebook to get the keys to unlock your potential. Property ownership was essential and if your business hadn’t been trading for several years, major lenders wouldn’t look at you.
Those days are gone. A brave and brand-new world of technology enabled fintech disrupters have flung open the doors to a range of flexible financial options.
Your business is unique. The challenges and opportunities it faces at any given time will be as unique as you are. The good news is that these new fintech disrupters have a huge range of options which can suit those unique needs.
For instance, equipment finance is a growing area of small business loans in demand – we’ve seen a massive 45% increase in enquiries over the last 12 months. People are wising up to the fact that taking out a short-term loan isn’t always the go-to, one-size-fits-all solution. Taking out specific equipment finance can assist you to invest in equipment that your business needs to keep moving forward. Buying vehicles, computers or machinery is all expensive but you shouldn’t (and don’t need to be) scared to spend. If investing in more vehicles or IT equipment could assist your businesses productivity, you need the flexibility and confidence as a business owner to invest without having sleepless nights about that valid cost.
Many new age lenders offer equipment finance because they know it can often mean a substantial financial outlay. Some offer specific IT packages so you can ensure your office is working efficiently.
Many fintech lenders will offer low doc business loans which will assist you even if you require less extensive paperwork.
Trade finance, invoice discounting, a business line of credit, shop fit-out finance, short-term business loans and bad credit business loans are all popular with small business owners. These are all loans tailored to the specific needs of businesses and available with one common factor that every business wants – speed. The amount you can borrow, and specific loan terms, can all be discussed to ensure repayment terms suit you.
Everything about business finance is designed to be flexible, easy and efficient because business finance has evolved to reflect the key qualities of good business itself.
Heath Fitzpatrick is COO at ebroker. Growing up within a small family business, and then moving into starting a number of his own, Heath has a lifetime of exposure to small and medium businesses. After securing qualifications, he started working in his family business then his own; maximising efficiency and streamlining processes before joining the finance industry.
ebroker is Australia’s first fully independent, transparent matching platform where anyone can find and compare unsecured small business loans.
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