A business owner always has a lot on their mind, and complicated business finances can add to the list of worries and stresses.
Fortunately, there are alternative business lenders that provide the fastest and smartest financing solutions for budding business owners.
Here’s everything you need to know about applying for quick business loans in Australia and how they can help your business finance and grow.
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Types of Quick Business Loans
Many quick financing options are available for Australian small businesses that will likely suit your company’s needs.
It can consider the purpose of your loan, your loan term, or even the business standing of your company.
Small business loans can help owners kick-start their ventures through funding and equipment upgrades.
So, to help you access financing options for your company, here’s a list of some of the most common quick unsecured business loans you can look into:
Unsecured Business Loans
An unsecured small business loan is a short-term loan that provides the ULTIMATE FLEXIBILITY that big banks don’t or can’t offer.
This type of loan is used for any business-related purpose, depending on your company’s needs.
Unsecured business loans often range from A$5,000 to A$300,000, depending on your lender’s terms and conditions.
Some companies even offer unsecured business loans that cater to those with bad credit to help businesses of different backgrounds.
Since you won’t need any assets and only need to submit minimal documents, it’s easy for small business owners to apply for this loan type.
Small Business Line of Credit
Unlike other non-bank lenders, this loan will only require you to pay for the money you use.
Business lines of credit provide you with a specific lump sum you can work with. You can withdraw money as needed and pay it back with its corresponding interest and additional fees.
Following your repayment schedule can IMPROVE your credit score and potentially allow you to increase your loan amount as necessary.
While they usually come as an unsecured loan, some secured lines of credit options can have a lower interest rate and less risk involved during repayment.
Equipment Finance
If you need financing to purchase equipment, this could be the fast business loan for you.
Equipment and resources aren’t cheap, whether you’re purchasing or repairing them. To keep up with any industry, you would also need to make the occasional upgrade.
This type of unsecured business loan is a great short-term alternative if there is a specific piece of equipment you need to work with as soon as possible.
Secured Business Loan Vs. Unsecured Business Loan
The main difference between secured and unsecured loans is how they ensure you repay them.
A secured loan relies on physical assets, such as property, accounts receivables, inventory, etc. If you can’t repay the loan, these assets will be collected as payment.
They also come with fixed interest rates, making predicting how much you need to settle easier.
On the other hand, unsecured small business loans heavily rely on business performance and cash flow to determine the best loan amount for you.
They are short-term loans usually used to provide a business overdraft and keep your cash flowing, especially on slower days when the money may not be pouring in.
How to Borrow Money for Your Small Business
Modern technology allows you to apply online for quick business loans.
Here’s a handy guide when applying for quick business loans and a few tips to help you get that coveted approval:
Application Process When Acquiring Small Business Loans
Applying for these loans is usually easy since many are AVAILABLE ONLINE. They’re more accessible and can be accomplished in mere minutes.
Submit an application and the necessary documents online to your preferred lender.
We’ll discuss the requirements later, but each lender may have specific requirements depending on their terms.
The approval process usually takes less than a business day. You’ll be informed of the approved amount, as well as the corresponding interest rate and scheduled payments.
They can come with daily, weekly, or monthly repayments, depending on how much you’ve borrowed.
Everything should be transferred to your business’s bank account within the workday.
PRO-TIP: Inquire about hidden fees so you won’t be surprised once you repay your loan.
Eligibility Requirements for Small Business Loans
While each company has its business lending criteria, the standard requirements for these loans include the following:
- The company has been running for AT LEAST 6 months
- Active ABN or ACN
- Minimum monthly revenue of $5,000
Note that monthly revenue requirements can depend on the lender’s terms for providing a small business loan.
Advantages of Quick Business Loans for SMEs
There are many reasons why small businesses prefer these types of loans. These are designed to cater to SMEs so they can get the most out of these loans.
Here are some of the benefits that encourage different business ventures to go for these fast business loans:
- Extra Cash Flow – Quick business loans are an excellent quick cash injection method for any business. The cash can then be used for anything, giving you working capital to help your business grow.
- Access to Contingency Cash – They’re a great way to ensure your business’s cash flow stays stable during unexpected events and months when business is slower.
- Cover the Bills – Quick business loans can cover urgent repairs, renovations, and other unexpected events.
- Hassle-Free Application – Many lenders have gone online with the loan application process, making it easier and more accessible to many Australian businesses.
- Accessible – Some small business lenders allow financing to business owners or individuals, even if you have a bad credit history.
FAQs
You may have more questions about quick business loans and how to best utilise them.
We’ve gathered the most common ones to help you with your research.
What’s the Difference Between Banks and Independent Lenders?
The main difference between banks and independent lenders is how they offer financing to small businesses.
Banks rely on deposits to finance their loan applications. If you’re looking for a LARGER LOAN, contacting a bank with more security can be the right option for you.
A small business loan is usually funded by institutional and private lenders, providing more flexible options.
Are There Small Business Government Grants Available in Australia?
Yes, there are government grants that can help Australian entrepreneurs and small companies get a head start on earning a stable income.
These programs further help the Australian economy by establishing healthy businesses to help the general public make a living.
Conclusion
Quick business loans have helped many business owners in Australia, providing small businesses with world-class service and a chance to compete in the ever-evolving business industry.
Enquire about the best small business loans from your preferred lender and get professional advice on which unsecured business finance method would be best for you.
