Financing Your Small Business
Running a small business invariably leads to some “growing pains”. One symptom being the stress of funding the growth of your business, cash-flow to pay the bills and staff while waiting to get paid by your customers, buying equipment to expand, etc…
Being a small business owner or self-employed often means the major banks are not willing to offer much help, as they like to see assets such as houses as security, which you may not [yet] have or don’t want to put at risk.
Thankfully, there are now many financing solutions tailored for growing small businesses, whether you are buying equipment, cars, trucks or need finance to help with your cashflow.
Let’s take a look at some options…
Specialist business lenders such as Prospa provide a streamlined processes for business loans from $5,000 to $250,000 with the help of “Fintech” (Financial Technology) to assess the strength of your business rather than your assets to determine credit worthiness. One of the key assessment criteria is the cashflow and spending pattern of your business, which can be quickly assessed by uploading your bank statements through Internet banking. The application process can be initiated by an online form and processed same day.
For equipment and assets such as cars and trucks, there are many specialist finance companies that cater for small businesses. For example, local business, Selfco Leasing based in Baulkham Hills services a wide range of industries, including catering, construction, landscaping, manufacturing and transport. Offering a range of finance options via “No Doc”, “Low Doc” and “Full Doc” programs, designed to assist clients with varying levels of supporting documentation.
Just starting out…
Some financiers will consider applications from newly formed businesses, with some lenders that will even consider “One Day ABN” cases with “Low Doc”, to cater for those starting from scratch.
There are many reasons why a client might choose a “No Doc” or “Low Doc” solution, including the need for a fast credit decision, lack the time to arrange the necessary supporting docs for a full application or simply they are yet to complete their latest financial. Many specialist lenders like Selfco provide “Low Doc” type financing solutions to suitably qualified businesses.
You may also be surprised to know that “Low Doc” or business loans don’t always mean high interest rates. For example, small business owners might qualify for better rates for cars when compared to a consumer car loan.
In summary, whether you’re a retailer, franchise owner, tradie, cafe or other small business or self-employed, there are many financing solutions available to help grow your business. A specialist finance broker can help you navigate this process and get you the best financing solutions for your growing business.
To find out more, contact us for an obligation free discussion.