When you start up your business, there are many key considerations that you’ll need to make. One of the big ones is how you will cover your startup costs and maintain operating expenses while you’re in the early stages of establishing your business. You might be wondering if there is a certain type of loan that can help you get started? And if you’re eligible to apply. Continue reading for some Do’s and Don’ts when it comes to getting a loan for your small business.
When should you not get a business loan?
You shouldn’t get a business loan if you’ll be using the funds to cover personal expenses.
Business loans are designed to support your business at different stages – from starting up to expansion.
Different types of business loans are offered by many financiers in Australia. They offer varying terms, interest rates and fees. If your current circumstances wouldn’t allow for you to meet the repayments on the loan, you might consider other methods of raising the funds for your business.
If you are in need of a loan to cover your personal expenses, such as for a holiday, dental work, or non work related car repair expenses, Fundo is the place to go!
Fundo offers Fast Personal Loans and if you have all of your information at hand, you can have cash in your account within 60 minutes if you’ve applied during business hours.
Why is it difficult for small businesses to get loans?
In Australia, we have a wide network of bank and non-bank lenders that are able to lend money to a small business that is starting up or already established. Each lender has their own set of criteria and requirements to meet to be eligible to apply, however, certain criteria can be difficult to meet. Those that do meet the criteria, may have difficulties navigating the application process, or preparing all the necessary documents. Business loans generally require documentation for the business, yourself and any other owners, especially if this is your first time applying.
It can be difficult to get a loan for your small business if you are unprepared, or not fully understanding of the requirements of the lender. You can make it easier on yourself by ensuring that you are applying for the right type of business loan for your individual circumstances, keeping your details up to date, and having your documentation on hand when you are ready to apply.
How can I get approved for a Small Business Loan?
When you are getting ready to apply for a loan, it is important to understand the requirements of the lender and; if and how you will meet them.
Research the different types of loans available to begin narrowing your search – some small business owners start off comparing interest rates, fees, and loan terms, or speaking with a financial advisor that specialises in Small Business Loans to get some guidance.
You can improve your chances of success by
- Understanding the requirements of the lender before you apply
- Having all your documentation up to date and ready to go
Each lender has their own requirements and it is important to understand them before you apply. Understanding the requirements before you begin can help you to present a well prepared loan application to the right lender for the best suited financial product.
Some lenders will have multiple credit product options available. Some of these options may require a business to be trading for a certain amount of time before they are eligible to apply for a loan, others may be flexible with trading term, but have stricter criteria around the business financials and how much they will be able to lend to you.
What types of business loan are there?
Banks and non-bank lenders offer a wide range of financial products to suit the changing needs of new and established businesses.
Some loan types are unsecured, which means that the lender doesn’t require you to provide collateral or security in order to approve your loan. Unsecured loans can sometimes be harder to approve as they carry greater risk. This loan type will often consider your credit score or credit rating. There are also secured loans, which will mean that the lender will take security over a valuable asset or assets owned by your business, in the event that you default on the loan.
There are many more loan types available with differing terms, amounts, rates and fees – which are all important factors to consider when making an informed decision. Finding the best option for you by using comparison tools, speaking to a financial advisor or broker can help to simplify the process for applying for a business loan.
Shop around for the best deal on a loan, consider fees, interest rates, repayment terms
When comparing different types of financial products or even the same product offered by different lenders, it’s important to understand how to compare one product to another. A product offered by one lender may have a lower interest rate, however be set over a longer term, or the reverse could be true with a higher interest rate, and a shorter repayment term.
Finding the best deal can be difficult, but not impossible with the right tools and contacts. Access to a financial advisor, accountant or broker specialising in small business loans will be able to help you to understand what is affordable. Don’t hesitate to consult with a financial advisor, broker or accountant for assistance in deciding which option is right for you. There are a lot of lenders and products available to you, and doing your research early can save you time and money in the future.
How much can I borrow for a small business loan?
Having a clear understanding of how much you can afford to borrow is an important part of the process when it comes to securing funding for your small business. A financial advisor will generally be able to help you get an idea of how much you can afford to borrow. Usually they’ll ask you some questions about your business, including your reason for the loan and future plans, they may review some of your documentation to offer you the best possible advice.
When you’re ready to start looking for a loan, keep in mind that there are many different types of loans and lenders available. Compare interest rates, terms, fees and other considerations before making a decision. Make sure you are fully understanding of the lender’s requirements, and once you’ve done your research, shop around for the best deal on a loan.
Fundo offers fast Personal Loans of up to $2000 and can have the cash in your account within minutes of approval! For more information visit our FAQ
Can I apply for a Fundo Loan for my small business?
Fundo Loans offers Personal Loans to individuals from $500 up to $2000. A Fundo Loan is used to cover personal expenses, such as medical or dental emergencies, entertainment, or to cover expenses associated with a holiday, home renovation or moving expenses!
Am I eligible to apply for a personal loan with Fundo?
We want to help as many Australians as possible! Fundo is a responsible lender – as such, in order to be eligible for one of our great personal loan products, you must meet certain qualifications. You must:
– Be over 18
– Earn at least $500/week in regular income, excluding government benefits
– Demonstrate an ability to meet repayment deadlines
– Not place undue financial pressure on yourself by borrowing from Fundo.
We look forward to assessing your application!
How do I apply for a personal loan with Fundo?
Our application process is all online and incredibly quick.
Fill out all your details on the application form and one of your friendly Fundo team members will assess your application.
Best of all, applications submitted during business hours will be processed on the same day.
More questions?
Fundo cares if you are borrowing money for a short term loan and something seems unclear.
Check out our FAQs or, our lovely customer care team would be glad to help you out. Just give us a call on 02 9066 9660, or send us a message online between 9AM and 6PM Sydney time.