Seven Tips For Securing Business Loans
Securing business loans in Australia isn’t necessarily difficult. Knowing how to navigate your way can be the difference between success and failure.
Banks and other financial institutions offer a wide range of business finance options. From commercial property loans, commercial vehicle leases, and commercial and equipment leases. To simpler options such as letters of credit, overdrafts and lines of credit. Here are some tips on how to improve your chances of success.
Work out what is realistic
It’s a good idea to find and compare credit options based on the amount of money you need to borrow. Also, how you want it supplied and the type of security you want to provide (residential, non-residential or none at all).
Find a Finance Broker
The next step in securing business loans is to speak the Home Loan Comparison Co, your MFAA accredited finance broker. Our job is to help you work out what loan type and lender are appropriate for your business and you. Together, we work with our clients to determine their borrowing needs and abilities. We select a loan suited to their circumstances and manage the process through to settlement. We also do a lot of the legal and other paperwork and have access to a wide range of loans and are experts in the area.
Have a credit history and make it good
Lenders are looking for two things when it comes to your credit status: an existing credit relationship and a relatively clear history. If a borrower already has an existing loan which they’re servicing on time, they are much more likely to be successful. Of course, there are options for those who are either credit impaired or just don’t have a documented credit history, and a we can help clarify these.
Actively show how risk will be minimised
Demonstrate how you will lessen the risk to you and to the lender. We can help you work out a plan. One place to start is make sure you don’t have multiple other debts. Doing a debt consolidation loan to sort out personal finance first is a great place to start.
For your first meeting, have up-to-date paperwork and tax records. Make sure you’ve done your research and have a fair idea how much you want to borrow and how you plan to spend it. You should also know your total worth, listing your assets and liabilities. Being self-employed, the banks always want more paperwork than being a PAYG employee.
Have a plan
Lenders like to see a business plan that shows that you know what you want to achieve and have a clear idea of how you can achieve it. This needs to go into great detail if you are newer in to your business.
Provide more than one exit strategy
Lenders want to know how they’re going to get their money back and some want up to three scenarios for what is called the ‘exit strategy’.
To give your business a good chance of success, talk to us. We are your MFAA accredited finance broker. Committed to finding the right commercial financing options for you.
The Home Loan Comparison Co. compares home loans from a much wider variety of banks than most people have time to consider, and we find the loan that suits your goals.
We are experienced, knowledgeable and dedicated to building ongoing relationships to keep on providing personal and valuable service that is rarely experienced when dealing with the banks.