There is nothing sad like seeing your business collapse due to inadequate funds. However, instead of closing down your business, you can consider getting a business loan in Australia.
From small to medium-sized businesses, it can be a huge challenge to get business loans in Australia. There might be no guaranteed growth of these small businesses, and many lenders will not consider them.
However, some ways can help businesses to get business loans in Australia. Lenders are ready to help you build your business by giving your business loans with affordable interest rates. But first, let’s understand when and why to take a business loan in Australia.
Why and when to get a business loan in Australia
- You can take a business loan in Australia when you want to expand your business. Growth is inevitable, and if you see the potential to grow your business, you can consider taking a business loan to cover that.
- If you want to buy business equipment and do not have enough cash, you can consider applying for a business loan.
- Adding more inventory can be another reason to take a business loan. But you should only add fast-moving products.
- You can also take a business loan to introduce new marketing strategies and do not have enough cash.
Now let’s see the seven ways that you can use to get a business loan in Australia.
1. Online lenders
With the growth of technology from day to day, lenders have moved to online platforms to get more clients and help many people at a go. In my view, I would say that getting a business loan online is easier than ever before.
For instance, Gday Loans can give you a business loan within 1 hour. The good thing about gdayloans is that you will meet 15 lenders at a go. And that means that the possibility of getting a business loan on the platform will be high.
In Gday Loans, you can get a business loan starting from $300 up to $10,000. The limit is good enough to do something you want in your business.
Gday Loans will charge you a flat rate of 20% establishment fee and a 4 % monthly fee. The lenders in gdayloans are available 24/7, so you can access them any time of the day. In addition, you can pay for the loans from gdayloans within three months.
On the other hand, if you are having a bad credit history due to your past loan applications. You can still apply for a short-term loan with Gday Loans. Bad credit loans are personal loan for people who have bad credit. These loans have set interest rates and are paid back in regular instalments.
2. Traditional lenders
When I say traditional lenders, I mean the banks, whereby you have to travel to their offices to get a business loan in Australia. However, some traditional lenders will need you to provide a business asset as collateral for them to give you a loan.
3. Uncleared invoices
You can use the uncleared invoices to get a business loan from the lenders who accept that. Once the debtor pays back the invoice, the money goes directly to the lender, but you will get the balance if the repayment is more than your debt.
4. Asset finance
Asset finance involves the use of business balance sheets and short-term investments to borrow a business loan. To get a business loan using asset finance, you should provide the lender with all the asset interests.
5. Australian government grants
To finance your business, you can consider applying for a government grant in Australia. However, you will need to commit a lot of time to send the proposal.
6. Credit cards
If your business has a credit card, you can also consider it to get business funding. However, for you to succeed with credit cards, ensure that you make timely payments.
7. Use collateral
To get a business loan, you can also consider providing collateral to your lender so that they can approve your loan. The asset has to be worth the amount of business loan you want.
The bottom line
If you need a business loan, first do your calculations and know the risks associated. Keep in mind that businesses can get profits or losses.