Whether you’re considering a small-business loan or simply want to find out everything there is to know about business financing, our comprehensive guide will reveal all.
A business loan is similar in nature to a personal loan. However, the acquired funds must be used purely for business purposes. As with other types of loans, a business loan involves borrowing an amount of money, before having to repay the loan with added interest. This total repayment amount is broken down into smaller repayments which are usually due on a weekly or monthly basis.
There are many different types of business loans, all designed to cater towards your venture’s specific financial needs. The most common small-business loans are listed below.
There are a number of business-related expenses that a business loan can be used for. Many of these include:
As with any exercise concerning your business, applying for a loan shouldn’t be a snap decision. Here are some important questions you should ask yourself before you begin your loan application process:
The business loan application process will largely depend on whether you seek financing through a traditional or alternative lender. Some lenders require the following to process your application:
If you own an Australian-registered business, have been in operation for 6 months or more, and have a minimum annual turnover of $50,000, then you can apply for a small-business loan online in as little as a few minutes.
It’s that simple!
There you have it – our beginner’s guide to small-business loans, including what they are, how they can assist your SME, and so much more. We hope this guide has given you all of the information you need to pursue the right small-business finance for your venture.
Yanir Yakutiel, CEO and Founder, Lumi