How to Get a Business Loan in Australia
Getting a business loan in Australia is very easy but you need to take some steps to maximize your odds to get it approved in your first application, and receiving the money as soon as possible to take full advantages of the business deal you have planned or the investment opportunity, which will make grow your business.
Systematic Investment Plan
You need to describe adequately and in detail how you will use the money. The investment plan has to be goal oriented; it must describe the positive impact it will have and how soon and to which extent the revenue will increase. The better documented and supported your investment plan is the more chances you will have to get it approved. If you have an economic study or financial analysis that is a tremendous asset in your favour.
Highlight your business payment capacity
Show your business bank statement and taxes paid as well as your accountant records to establish your business’ payment capacity. Additionally, pinpoint how the loan money will increase its revenue and make easier the payment plan without risking the business cash flow or its operational money.
Consider offering an asset as collateral
Giving collateral as a guarantee for your business loan increases your odds exponentially to get it approved. If you are asking for a significant amount or your plan of activities is weak but you think that is the path for your business. Consider offering any valuable asset that you have as collateral or back for your loan. The banks love secured credits because they decrease the default risks. On the other hand, the interest rate and the payment terms are better in these types of business loans. You need to keep in mind that the best assets are real estate properties and usually, you could get only from 40 to 60% of the real estate market value in cash from a business loan.
Fulfil the requirements
You need to pay attention to all the paperwork and bring with you all the requirements for a particular business loan, if any paper is missing, it might delay the credit approval or give the wrong impression to the bank about your seriousness and professionalism. Before you fill out the application, you need to check all the requirements and be 100% sure you have all of them and your business meets the prerequisites.
Sources:
http://www.businessfirstmagazine.com.au/increased-protections-for-small-business-borrowers/19753/
http://www.businessreviewaustralia.com/magazine/issue?id=12486797/45125217
https://www.entrepreneur.com/article/244873
http://www.telegraph.co.uk/finance/personalfinance/borrowing/8014963/Five-ways-to-get-a-cheaper-loan.html
http://www.businessfirstmagazine.com.au/increased-protections-for-small-business-borrowers/19753/
