Grow or Manage Your Company with Small Business Loans
Most business owners in Australia are classified as Small to Medium Sized Enterprises or SMEs. Almost 80% of these SME owners apply for business loans at one time or another while running their business. But sometimes they are confused about what type of small business loan to apply for as there are plenty of financing options. However, the small business funding of Instant Business Finance allow a business owner to borrow capital according to the revenue the company creates and repay it over a particular set term.
The borrowers need to have a minimum of 6 months of trading history and a minimum of $5000 monthly revenue to qualify for loan application and approval. The business owners can access funds up to $150,000 on the same day of application just by providing official documents. There are usually two types of small business financing in the market.
Secured Funding for Business
In this loan type, the borrower submits a residential property or a business asset as a loan security.
Unsecured Small Business Loans
Here, the borrower does not have to put any asset or property as security for the loan.
Benefits and Features of loans for small businesses
1. Benefits
Small Business funding comes with several advantages, out of which the important ones are as follows.
Access to capital whenever necessary
You can cover different business investments and costs like business diversification and expansion, purchasing inventory, accessing various markets and many more with small business funds.
Flexible according to the borrower’s requirements
Select a fixed and variable interest rate, repayment frequency, loan term and type according to your business needs. The loans for small business types can be principal and interest-based, interest only based or both.
Faster approval and lesser paperwork
For current customers, we use and verify the information we previously have and thus reduce the paperwork number. It leads to faster application access and small business loan instant approval.
2. Features
The loans to small businesses come with the following attractive features.
- Borrow amount starting from $5000 to higher amount
- Low-interest rates and fixed terms available
- Repayments according to the borrowers’ budget
- Includes both secured and unsecured small business loans
- Residential loan term between 1 to 30 years
- Commercial loan terms of up to 15 years
- Flexible LVR options and security
- Rates from 9.95% variable rate
Ways to get low-interest rates on small business loans
Most small business loan lenders will apply interest rates based on the simple interest rate, Annual Percentage Rate (APR), and Factor rate. The interest rate typically applied to small business finance will create a difference in the total amount the borrower has to repay. A low-interest rate is most beneficial for the business loan over the repayment term. However, it is not only the factor influencing the loan’s true cost.
To make sure the payments are to the minimum for the entire loan term, you have to consider other factors that might have an impact on the total cost of the small business financing, including:
- Annual or monthly fees
- Loan establishment fees
- Early repayment penalties
- Late payment penalties
There is more chance of small business loan instant approval for borrowers who can offer collateral on the finance and have a good credit rating. These strongly indicate to the small business loan lenders that the borrower can meet their repayment obligations. However, Instant Business Finance only needs the borrowers or the business bank account statement to access if they have the necessary capacity for meeting the repayments. You can find out a great deal on the amount you want to borrow through a small business loan with the help of your business revenue. We can study the risk involved by approving the loan through bank statements.
How to apply for Small business finance?
You can apply for small business funds from Instant Business Finance, similar to other options.
- Apply to us through the online application form
- We will examine the potential capability to repay the loan based on their documents
- The loan amount, terms, interest rates, and repayment frequency will get fixed through a contract
- The loan for small businesses gets approved, and the funds reach the borrowers mentioned bank account
- The borrower will start making the repayments according to the agreed contract till the end of the loan term.
Eligibility Criteria for loans for small business
Instant Business Finance demands minimum eligibility criteria for loan approval.
- A registered Australian Business Number
- A GST-registered small business
- Permanent resident or citizen of Australia
- Minimum six months of operational time
- Bank statements (business and personal)
- Profit and loss documents
- Business location and structure
- Annual and monthly business revenue
- Asset details that you want to purchase
- Business financial statements
Instant Business Finance helps to make making and managing more money easy and hassle-free. We understand that the finance world is complicated and thus offers exclusive guidance on loans to small business to all our customers.