Tuesday 06 July, 2021
So you’re a business owner. Maybe you want help managing your cash flow, or you’re looking to fund your growth, or you want to buy equipment for your business. But to do it, you’ll need some extra funds.
Excellent. Let’s go and ask for some money!
Just like your first relationship, poor planning and preparation will lead to rejection and heartbreak when it comes to commercial loans. To maximise your chances of being approved for your business loan, make sure you take note of the following.
Your lender will want to understand your financial situation and business goals – and make sure they are achievable. You may think you’ll make a billion dollars within a year, but your business plan will probably say otherwise. Having a comprehensive business plan will help the application process.
As well as having a business plan, you’ll also need to provide additional background information about your business – including financial records, cash flow projections, assets and liabilities, and a business case for your loan.
Find out what is required for your application here.
It’s easy to be overwhelmed by the number of commercial loan products available. Speak to a finance professional to make sure you are applying for the right type of loan for your needs. They can help you to navigate: secured or unsecured loans, fixed or variable interest rates, potential costs, interest payments, hidden charges or terms, different tax and GST implications for each loan type – and more.
Use a loan repayment calculator to give you an understanding of what you can afford to repay – but don’t take this as the final word. It’s highly recommended that you also consult a finance professional to provide objective and data-based advice about your financial situation.
We’d love to help you out – and no loan is too complex for our team to consider. Contact our brokers to chat about how we can help you achieve your business financial goals.
When applying for a loan, you’ll hear terms such as “borrowing power”, “borrowing capacity”, and “assessment rate”. But how do they relate? What do they mean? We’ll break it down for you in a simple equation.
During your research into your financial situation, you may have clicked on our calculator section – and been overwhelmed with the number of different types available! What do they all mean and what are they used for?!