How To Get A Business Loan In Australia

Owning a business is a time-consuming process, and not to mention very expensive. If you’re not careful, you can find yourself in a nasty financial hole very quickly. With a rising demand for business loan options in Australia, it can be important to have access to finance when you need it.

Fortunately, there are business loans available to help ease the financial burden of owning a business. Here are a few tips on how to get a business loan in Australia.

What Is A Business Loan?

  • Equipment costs
  • Property and office leases
  • Business advertising
  • Employee wages
  • Acquisitions
  • Company vehicles

The purpose for taking out a business loan is to help fund your business expansion and manage your cash flow. Whether you are a long-established company or a start-up, accessing finance can be a huge help in many different ways.

Similar to other kinds of finance, business loans have the option of being secured or unsecured. A secured loan is one that is backed by an asset, such as property, equipment or inventory. An unsecured loan is not backed by an asset and therefore may be more difficult to obtain. With an unsecured loan, you may not have the option of borrowing as much money as you’d like, and you may be subject to higher interest rates.

Note: The terms “business loan” and “commercial loan” are often used interchangeably when it comes to finance. However, it’s important to note that these are two different financial options. A business loan covers a wide variety of monetary aspects of a business (such as those above), while a commercial loan typically refers to businesses wanting to purchase a commercial property.

Low Doc Business Loans

A low doc loan is a type of business loan for business owners who may not have all the traditional documentation (like tax returns, financial statements, etc.) to show a lender when applying for finance.

This type of loan is usually more expensive than a standard business loan because there is more risk for the lender. However, it can be a good option for business owners who might not otherwise qualify for a loan, like those with a start-up company.

Applying For A Business Loan

When it comes to business finance, it doesn’t have to be difficult. Here are the typical steps involved in applying for a business loan:

1. Research Your Borrowing Options

There are a number of different types of business loans available, so it’s important to do your research and find the right one for your needs. Are you wanting cash to purchase new business equipment, or are you interested in funding your advertising spend before a big campaign? Your loan reason may have an impact on the type of loan you’re after, so familiarise yourself with the different options out there.

2. Understand Your Finances

An important part of borrowing money for your business is understanding your financial position. An easy way to convey your business finances to a lender is through a profit and loss or cash flow statement, a copy of your latest tax report, and other financial documents that depict your monetary position. If you are a director or shareholder of a company, you may also need to provide individual financial information, including personal income tax returns, proof of income outside of your business and credit history.

Note: If you’re wanting to borrow money for a start-up company, you may need to provide a business plan outlining your business objectives, customer segment, product or service description and your business growth potential.

3. Determine Your Desired Loan Terms

The next step is to decide how much you need to borrow, and for how long. Your borrowing capacity will depend on a number of factors, such as the purpose of the loan, your business’s financial position and your personal circumstances.

You’ll also need to consider what you can afford in repayments, based on your cash flow. It’s important to remember that you’ll need to make repayments even when your business is doing it tough, so make sure you factor this in.

Remember to only borrow what you need. While it can be tempting to finance a larger amount of money, you’ll be left paying off more interest in the long-run. To get an idea of your borrowing capacity, Buddii Finance’s business loan calculator can estimate your repayments based on your desired loan terms.

4.  Find A Suitable Financial Broker

With so many loan options on the market, it can be hard to find the perfect fit for your business. Searching for a lender can be time consuming and not always rewarding.

Thankfully, business loan brokers exist to make the process simple and straightforward. When deciding on a broker, it’s important to go with a highly experienced team that has a reputable name in the business loan industry.

Buddii Finance is a credible and trustworthy brokerage that can help you find a business loan tailored to your needs. We take the stress away from applying for finance, and offer a range of loan options to choose from. When you apply with Buddii, you can trust that we’ll do our best to find you a great deal on a business loan.

5. Choose The Right Loan For Your Business

Applying with a broker like Buddii is quick and easy. We work with you to find a business loan that suits your needs and financial situation. If you are approved for finance, you’ll have the option to choose from a range of loans that we’ve tailored to your business.

You can use our online application form to apply for a business loan today. We’ll get in touch with you to discuss your options and find the best loan for your business.

Choose Buddii Finance For Your Business Loan Needs

Applying for a business loan in Australia is quick and easy with Buddii. We work with you to find the best loan for your business, and offer a range of loan options to choose from. Apply today to take the first step in securing your business loan.