How’s your cash flow? Almost every business comes to a point where supplemental financing is needed. This can be particularly true for startups, and for enterprises requiring larger capital commitments. It’s important to do this right. While there are many advantages of a business loan, the business loans offered by your bank may not be the best fit. There can be big differences in what is on offer from different financing sources, but you have to find them. Do you know the right questions to ask? Do you have the time to do the research?
FinanceBeagle is Here for You
FinanceBeagle is your go-to loan broker. We connect our clients with the best loan providers for their situation. We know the ropes of getting the best business finance loan. We do the legwork so you don’t have to, and your dedicated loan specialist will have the answers you need to all your questions about the advantages of a loan for a business.
Getting started with us is easy. Call us on 1300 225 525 for more information, or request a quote online. You can also fill out our online form, or email us at admin@financebeagle.com.au.
Is a Business Loan Right for You?
You’ll need consider all aspects of your business situation to decide if a loan is the right way to go. Above all, you’ll need to be able to carry the loan successfully without burdening your business with excessive costs. You may need the loan to supplement cash flow, but do you expect to have sufficient future cash flow to service the loan? You know your business best, but a trusted professional adviser can be a big help in finding the answers and gaining the advantages of a business loan for you.
Types of Business Loans
Many business loans are general-purpose financing. That is, they may be used for a wide range of normal business expenses, for example inventory and renovations, or possibly for strategic investment opportunities that may appear rather suddenly. Another type of business loan is for working capital – these are usually shorter term and are used to cover immediate expenses, especially in businesses where accounts receivables are a significant source of revenue. The common advantages of a business loan will be to smooth out cash flow and backstop core business operations.
Unsecured and Secured Loans
For an unsecured loan – that is, one that is not backed by collateral, there will typically be a minimum of annual gross sales required for different levels of financing. Some more specialised types of business loans, such as those for equipment and machinery, may be secured by using the purchased unit as collateral for the loan.
How Big Does Your Business Need to be?
All sizes and types of businesses are candidates for business loans. The important thing is that the loan should be sized to the business – not too big for the business to carry, and not too small to have a very positive and revenue-enhancing effect. One of the big advantages of a loan for a business is that it can be tailored to fit just right. To take advantage, you’ll need to have a good idea of how your business may change and move forward over the time of loan repayment, whether your business is big or small, or in between.
Your Credit
It is normal that lenders will look at your personal credit situation, even though they are considering lending to your business. If your score is not where you’d like it to be, get started doing what you can to improve it while you are in the early stages of checking out the advantages of a business loan – this may save time later on when you get to the approval stage. A good personal credit profile can result in easier lending terms – like a better interest rate, and perhaps a longer repayment schedule, both of which will lower your monthly payment.
FinanceBeagle is Your Professional Loan Advisor
Business financing is complex, and there’s no need to go it alone. We know you may have a lot of questions. We have the answers, and we are ready to stand with you. We work directly with a portfolio of more than 30 high-quality lenders, and we will find the one that fits best with your business. You’ll work with a dedicated loan specialist who knows your needs and your situation. It takes just a minute to get in touch and get started.
Call us on 1300 225 525 for more information, or request a quote online. If you prefer, you can also fill out our online form, or email us at admin@financebeagle.com.au. We are here to help your business succeed and grow.
