The economy is constantly evolving, and right now in 2022, it’s all about inflation. This creates uncertainty in the cost of goods and manufacturing inputs, not to mention shipping times and other logistical challenges. Managing your business funding and financial position through changes in the economy is essential to make sure you’re best placed to serve your customers and keep operating well into the future.
You might be wondering what the best options are for your business’ funding situation. Ensuring your working capital is up to the requirements of your needs is best not left to the last minute. Plan ahead and make sure you’re in the best position to grow or weather any temporary storms. Business loans are a popular choice for many businesses, particularly small businesses that need additional funding. Let’s look further into how they work and how to best set your affairs in order to qualify for one.
What are Small Business Loans
Business loans are borrowed capital from lenders that your business can use to meet your expenses, buy assets or otherwise invest in your company’s growth. Previously, business loans were predominantly the affairs of the banks. Now, that’s not the case. There is a range of specialist non-bank lenders that tailor their offerings to the vital small business segment. After all, over 97% of all businesses in Australia have this characteristic. Small businesses necessarily have fewer resources and need a streamlined way to access capital fast.
There are advantages to small business loans. Unsecured business loans offer an amount lent against the cash flow of your business. This means you won’t be required to provide a mortgage over your business or property. There are also other commonly used funding options, such as business car loans that are tailored to help you purchase the commercial vehicles you need.
Qualifying for Unsecured Business Loans
While unsecured business loans can be a fantastic solution for your business funding, you need to know how to qualify. If you have everything ready to go, securing the financing you need can be achieved with a simple online application, and approval can be done within days, with your cash in your account shortly after.
You may need to prepare some documents and ensure your records are in order. While each lender is slightly different, most will be able to provide options if you have:
- Been trading for a minimum of 12 months
- Registered for GST
- An ABN
You’ll often also need to provide some additional information. You can expect to provide your credit rating (or be willing to have it checked), your business bank statements, tax records and possible your accounts, including profit and loss statements, as well as your balance sheet.
Having all this documentation in order and up-to-date is the best way to qualify and streamline the application process when seeking a business loan approval. Take the steps now to refresh your files and accounts, so you’re ready to go whenever the need arises. This will benefit your business in more ways than just applying for a loan – your accountant will thank you!
Tips to Get a Business Loan Fast
If that seems simple, it often can be. Nonetheless, here are three further tips to make securing an approval a breeze.
- Think of your application from the lender’s perspective. Lenders will ask themselves why they should lend your business money. Are you a risk to them? Make sure your credit score is up to standard, and your company accounts are free from worrisome transactions, such as gambling or alcohol.
- Be clear on what you want and how you will use it. Know how much money you want to borrow and what you’ll use it for. Loan amounts that are excessive compared to your average turnover are often a cause for rejection.
- Work with an expert business loan broker. Take the stress out of it by working with a dedicated business finance broker such as Capital Plus Finance. They can help you choose the right financing option for you and help you get it fast. They’re experienced and know how to give your application the highest chance of success – one of which is taking your application to the most appropriate lender from the very start.
Qualifying for a business loan in 2022 doesn’t need to be a mystery. Make sure you meet the minimum requirements and be clear on what you want and why you want it. Have your documentation and accounts in order, and seek the expert services of a business finance broker to further secure your chances.
Capital Plus Finance is an experienced business loan broker that has your best interests at heart. Choosing the right business loan for you is what we do, ensuring you receive flexibility, fast approval and great service. With a panel of many lenders, The Capital Plus Finance team will do everything we can to help you qualify for a suitable business loan for your business. Please give us a call anytime to find out more or to have an obligation-free chat about your situation.