About our business loans
We are a trusted beacon in the realm of small business loans, where we transcend the conventional role of a mere loan company; instead, we passionately embrace the mantle of your committed financial partner, employing our expertise to customize solutions, offer empathetic guidance, and stand shoulder-to-shoulder with you as you navigate the dynamic landscape of entrepreneurship, ensuring that your aspirations flourish and your achievements know no bounds.
What is an business loan?
A business loan is a financial arrangement in which a lending institution provides funds to a business entity for various purposes, such as expanding operations, covering operating expenses, purchasing equipment, or investing in growth initiatives. This type of loan allows businesses to access the capital they need to achieve their goals and navigate financial challenges effectively. Business loans come in various forms, each tailored to specific needs and circumstances. They can be secured or unsecured, with secured loans requiring collateral (such as assets or property) as a form of security for the lender, while unsecured loans do not necessitate any collateral.
The terms and conditions of a business loan typically include details about the loan amount, interest rate, repayment period, and any associated fees. These terms can vary widely based on factors such as the borrower’s creditworthiness, the purpose of the loan, the industry the business operates in, and the overall economic environment. Business loans offer entrepreneurs and business owners a valuable resource to manage cash flow, pursue growth opportunities, and ensure the smooth operation and expansion of their ventures.
FAQ's
As small business owner’s ourselves we understand the value of your assets and how crucial they are to your business. Losing your property or equipment is not an option, which is why we offer unsecured business loans and lines of credit from $5k up to $500k+ that generally don’t require any collateral.
We carefully evaluate the health of your business to assess your creditworthiness and determine the loan’s terms. If you require a loan exceeding $250,000, we may request collateral to secure it. To facilitate repayment, we strive to make the payment process as seamless as possible, aligning with your cash flow for greater convenience.
Our objective is to assist as many small businesses as possible with funding. Unlike large banks, we don’t impose unattainable requirements.
To qualify for a loan, you must meet three basic criteria:
1. A trading history of at least three months for your business.
2. A monthly turnover rate exceeding $6,000.
3. Consistent cash flow, whether it’s daily, weekly, or monthly.
We keep the loan eligibility process hassle-free by avoiding excessive paperwork requirements, which means we only ask for essential documentation.
To verify your identity, we usually require nothing more than your driver’s license and your business’ ABN. Additionally, if you’re applying for a loan of up to $250,000, all you need to provide are your business account’s bank statements for generally the previous three months.
For larger loan amounts, we may require some additional information, such as recent financial statements of your business.
Certainly. At our company, we place a high emphasis on safeguarding your privacy and security. We and the lenders we use take stringent measures to protect our clients’ information.
If you want to learn more about our privacy policies, please refer to our Privacy Policy.
Unlike traditional lenders, the lenders we use don’t solely rely on a flawless credit report to approve loan applications. Although we conduct a personal credit check, we also consider your business’s financial health when making loan decisions.
Having a good credit score can strengthen your application, though. Credit reporting bureaus evaluate several factors to determine your credit score, such as:
· Recent loan applications made
· Current credit account balances
· Overdue bills
· Past bankruptcy (if applicable)
While a good credit score reflects your financial standing, please remember that it’s not a deal-breaker if your credit score is less than perfect. If your business is doing well, your personal credit score shouldn’t hold you back.
As you are aware that the most significant cost associated with a loan is the interest rate. With the lenders we use, we don’t offer fixed interest rates since every business is distinct. Instead, we consider various factors when deciding on an interest rate, such as:
· The industry you’re in
· Your business’s longevity
· Your cash flow stability
Our team evaluates your loan’s risk to determine a suitable interest rate. We strive to offer a reasonable rate that you’ll feel comfortable with and like everything it is ultimately up to you whether you take the offer or not.
With the lenders we use they all believe in transparency when it comes to loan repayments. That’s why we provide a detailed repayment schedule from the start, so you know exactly how much you’ll need to pay and when.
If you make payments on time, you won’t be charged anything beyond what’s outlined in the repayment plan. To make things even easier for you, we will ensure we try and customize the payment schedule to align with your cash flow cycle. We’ll automatically deduct payments from your linked business account according to the agreed-upon schedule.
We have a range of business funding options available to suit different needs. Along with our unsecured business loans, we also offer the following financial products:
Equipment financing – This loan is designed specifically for purchasing equipment. Typically, you will need to provide collateral equal to the value of the asset you want to buy. However, this may allow for a lower interest rate. You can purchase any type of equipment, from tools and machinery to business vehicles.
Business overdraft – Also known as a line of credit, this option provides short-term cash injections, making it ideal for seasonal businesses or unexpected expenses. It can be used to pay for payroll, suppliers, or any other short-term expenses.
Vehicle finance – If you need to upgrade your fleet or acquire large, expensive assets like excavators or commercial cookers, vehicle finance is an excellent option. In some cases, you may also use a regular business loan for these purchases. If you have any questions about these options, feel free to contact us.
Business credit scores typically range from 0 to 1200, with good scores falling between 622 and 725, very good scores between 726 and 832, and excellent scores above 833. However, acceptable credit scores vary from lender to lender, although most prefer borrowers with scores of at least 680.
Unlike traditional lenders, we aim to make unsecured business loans more accessible, even for businesses without an exceptional credit score. We consider various other factors in addition to your business credit score to determine your loan eligibility, and do not rely solely on your score.
Regrettably, even businesses that are financially secure may find themselves defaulting on loans due to unforeseen circumstances. While lenders may be willing to overlook a few late or missed payments, consistently neglecting payments will result in a default on your loan.
Despite the fact that your unsecured loan may not require specific collateral, defaulting can still have consequences. Lenders may choose to charge late fees, raise interest rates, or even pursue legal action to claim personal and business assets to recover their losses.
Furthermore, defaulting on any loan will significantly decrease your credit score, making it more difficult to obtain financing in the future if you need it.
Remember that neither you nor your lender wants you to default on your loan. If you are contemplating defaulting, always speak with your lender first. They may be able to provide additional assistance and guidance to ensure that you do not experience the negative effects of defaulting on a loan.