How to Find a Small Business Loan in Australia

business loan application

Starting a business, no matter how small, requires a solid foundation and usually comes in the form of a business loan.

One also needs to gain substantial knowledge in finance and (small business loans or bank business loans), marketing, business planning and market research, among other things. However, it would be fair to say that managing your business finances would be the most important.

So if you need money for your business, there are a number of small business loan providers in Australia that will be able to assist you.

There are different types of business loans that you can apply for, depending upon the funding you require. With proper planning, your small business cash flow issues will surely be rectified, hassle free!

Please visit our business loan application page and apply for a business loan online today!

Types of Small Business Loans

  • Start-up Financing - If you need funds to jumpstart you business, then you can avail of the start-up financing loan for small business loans, which is offered by several banks in Australia. Loan proceeds can be used to buy tools, materials, and equipments needed to operate the business.
  • Business Growth Financing - People who already have established their small businesses can avail of this type of loan. This is for businesses that are growing at a regular pace and there is a need to buy equipments for a bigger and better production process, so as to answer the customer's needs.
  • Inventory Financing - Inventory finance ensures that your business has enough products to sell to customers. Inventory loans can also be used to purchase materials necessary to provide a certain service to clients. Inventory financing can effectively manage your supplies to meet the demands of your target market.
  • Motor Vehicle Financing - If there were an immediate need for your business to transport goods and equipments, then you would need a motor vehicle loan to answer the business' transportation requirements. Most Australian banks provide both vehicle lease and purchase options to their clients.
  • Equipment and Plant Tools Financing - If the small business requires big industrial equipments to be used in plants and production places, leasing are an option for small business owners. Even though the ability to purchase equipments is usually reserved for large corporations, renting equipments instead of buying them proves to be the more feasible choice for smaller businesses.
  • Business Property Financing - Every business needs an area to conduct their commercial transactions at. This should not be an issue of concern for Australian small business owners. There are a number of financial institutions that handle mortgage of commercial spaces. Most of them even offer high flexibility in terms of payment and loan period.
  • Trade Financing - Australian small businesses have the ability embark into import, export, or domestic trading primarily because of the support that the Australian government provides though partnership with commercial banks. The trade financing loan process may require a little more requirement than traditional small business loans, but it can certainly help boost a small business.

Apply for an Unsecured Business Start Up Loan

Most unsecured business loans in Australia are handled and processed by almost all reputable banks operating within the continent and many of them follow the similar standard when dispensing a loan. Here are some standard proceedures that usually take place when your business in need of a business startup loan:

1. Talk to the bank's financial expert

Talking to a financial expert corresponds to the stage of assessing the exact needs of the business. Also at this phase, the bank determines which type of loan will specifically solve the funding requirement needed by the small business.

2. The loan is drawn and documents are requested

Once the right type of loan is exactly matched with the needs of the business, the actual application process begins. At this stage, borrowers need to fill out an application form and submit all documents required by the bank.

3. Verification of credentials

After all the documents are in, the bank then corroborates the authenticity of the document, as well as check your credit status, history, and background. The small business's financial standing is also evaluated. And then the bank decides as necessary.

4. Approval and signing

After the period of verification is complete, the small business loan application is approved. The formal signing of contracts is performed and the small business loan proceeds are released. The borrower then is free to use the funding according to what was agreed upon by them and the releasing bank.

A list of all Australian banks offering small business loans can be obtained from the Internet and other local sources. Most banks provide extensive information about the small business loans they offer. Try to check out their individual websites too to learn more about them.

Please visit our business loan application page and apply for a FREE business loan assessment today!

About the Author

This tutorial was written by Andy White Opens in new window, CEO of Business Trader.

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