What is a Business Loan?
A business loan is an amount of money granted to a business entity for the purpose of raising the capital needed to start, run or expand a business.
Getting a business loan is a complex process. For this reason a business owner must take the time to learn about how loans work, and the necessary requirements before approaching a lender.
Companies take out a business loan to apply toward expenses for which they have insufficient funds. The most common of these are:
- For business expansion
- To purchase office supplies
- To pay for wages
- To purchase inventory
- To buy machinery or equipment
Your lender will want to know what you will do with the money. So be prepared to give the details of how or where the money will be spent. They will evaluate your company’s working capital, amount of debt, history and the potential profitability of your business.
Be professional in all your dealings with a lender. Otherwise, they may decline your business loan application.
Pay attention to the payback period, the interest rate and what the lender will use as a collateral. If the loan has a high interest rate, you generally have two options:
- Repay the loan as quickly as possible
- Refinance the loan at a lower interest rate
The right strategy is to use a high-interest loan for bridging a short-term cash gap, not for long-term financing needs.
Your business loan broker is the best person to teach you about how to obtain a business loan and avoid exorbitant interest rates.
Benefits of an Approved Business Loan
In today’s tough economic conditions, an approved business loan can greatly help with your cashflow. It can provide short-term or long-term financing for your working capital needs or to fund expansion plans for your business.
No business can grow without finance. It is its lifeblood. And a loan is one the best possible sources for business cash. If you’re a startup, an approved business loan is a big help in setting up and running your own business. For instance, most small businesses lack the capital needed to propel themselves through various stages of development and growth. So an approved business loan allows you to
- Keep your business afloat during hard times
- Create working capital
- Retain ownership and control of your company
- Fund your marketing campaigns
- Purchase real estate
- Enjoy flexibility in your expenditures
- Expand your business
- Meet emergency expenses
- Invest in high quality tools, machinery or equipment
- Move your establishment to a better location
- Focus on growing your business without worrying about cashflow
As long as you’re investing your money on projects that lead to business growth, all your hard work will pay off in the long run.
Here at Commercial Loans, we can connect you with one of Australia’s top business loan brokers. With our wide network of loan brokers, our process is quick and hassle-free. This means that you can get your money right away if you’re in an emergency situation.
With Commercial Loans by your side, it’s easy to keep up with project deadlines, due dates on bills and your cashflow requirements.
Talk to one of our experts today! We can help you with your business loan needs.
There are many reasons to consider refinancing your commercial loan but whatever your reason we’ve got you covered! At Commercial Loans we will connect you with one of Australia’s top commercial loan brokers who will assist you in obtaining a finance approval at a highly competitive rate.
Whether it’s to free up capital to acquire new plant and equipment, fund the deposit to purchase other commercial or residential real estate or simply to reduce your interest rate to improve business cash flow, our brokers understand the requirements of Australian business and can tailor a solution to meet your needs large or small.
Some of the solutions we offer are:
- Lending up to 80% of the property’s value or 100% with additional security
- Create working capital
- Expand operations
- Purchasing new machinery or equipment
- Purchase of real estate, both commercial and residential
- Leasehold Improvements
- Speak directly with one of Australia’s top commercial loan brokers by clicking on “Get a Quote” below