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Looking to add some capital into your business? There are different types of business loans you can apply for. However, the eligibility criteria will diverge from lender to lender and loan type. The lending institutions will evaluate the business’s credit profile, age of your business and turnover in your application.
There are many types of business loans. The best-suited loan to you depends on what your business requires. For instance, you could apply for an equipment loan if you want to buy business equipment.
Businesses can either be lent a revolving line of credit or a lump-sum payment, which is repaid with interest over an agreed term (typically between three months and five years).
You can use the loan for a wide array of reasons. This consists of improving a short-term cash flow, purchasing a vehicle, real estate for your business or expanding and growing your business.
Unsecured Business Loans. You do not need to use an asset as loan security with an unsecured business loan. They are considered high-risk borrowing and may be offered on the higher interest rate and lower loan amount.
Secured Business Loans. For this category, you can use an asset as loan security. The asset is typically commercial or residential property. And such business loans offer a lower rate of interest as they are tied up with collateral.
It may be challenging to obtain a business loan without any sales. Lending institutions want to know you can repay the credit before they finance your business. Banks have a long list of conditions. This includes your sales, bank statement, business plan and cash flow projections.
Alternatively, non-banks may not ask for as many documents, although they will look at your bank statements. It is to evaluate your average monthly sales, among other factors. They want to understand whether your business affords to pay back the loan and generate revenue.
To be eligible for any business loan, your business will need an Australian Company Number (ACN) or Australian Business Number (ABN).
Banks will evaluate your loan application based on the business’s ability to repay and its risk profile. They will judge the following:
Ö Company’s credit profile
Ö The age and turnover of your business
Ö Company structure and accounts receivables
Ö Existing debts, tax debts and profitability. Existing debts, tax debts and profitability.
Every business is different, and if you feel overwhelmed with available options and not sure which business loan is right for you. Let’s connect for a no-obligation consultation to discuss available options that suit best to your circumstances.
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”