How to get a business loan
In business, there are a lot of questions. Whether that be questioning myths about the industry you are in, how to grow your online presence or maybe increasing profits. When it comes to growing your business, there are a few ways to go about getting the funds to do so. For example, you run a cafe and you are looking to expand so you can have more people in your cafe at once and that would also require more staff, more ingredients and possibly more equipment such as a bigger coffee machine. You could plan and wait until you accumulate enough money to do this on your own, but that takes time and if you’re in a competitive area, you might get overtaken by another rival cafe. One solution to this which will allow the business to grow would be, getting a business loan.
But how do I actually get a business loan?
Well, there are a few ways to get a business loan. You could:
- Go to your bank e.g NAB and see if they can assist you
- You could do your research online and see if you can apply somewhere
- You could use a service that walks you through the process and deals with the lenders for you e.g LoansOne
- Visit a comparison website like Finder.com.au
After going down any of the above avenues, you then need to ask yourself a few questions:
- How much do I need
- What do I need the funds for
- How long do I need to have the funds for
- What is my turnover
- Do I have property security?
These questions are the ones most lenders care about. With the broad spectrum of lenders out there, they are looking to see your turnover, what the funds are for and if you are looking to use property as security or not. Let’s just say you do have property, but you didn’t want to use it as collateral for a loan. You could use a facility such as an Unsecured Business Loan, which as the name suggests, is Unsecured.
Once you have worked out those details, then that is where you decide where you want to go to get that business loan. Banks have lower rates, slower processing time and overall they can be less flexible. Non-bank/private lenders have slightly higher rates (compared to banks), but you could have funds in 24 hours and they are more flexible in terms of the loan types that are on offer.
Ready to get a business loan?
If you’re ready to get a business loan, click here to get started and we can give you a call to walk you through the process and your options.