No matter how well the business is running or how much profit it is making, the stress about the finances is a constant ordeal for business owners, especially if you are heading a small enterprise. Unlike large corporations, these small enterprises don’t have a robust financial foundation. If the business suffers losses for a few consecutive months or if there is any disruption in the cash flow, the financial problems will not take long to surface. Keeping that in mind, this blog will present a few popular small business loan options for entrepreneurs looking for immediate financial aid.
Here are our top small business loan picks for you.
Most small businesses don’t have an asset to peg against the loan amount. Hence, applying for a secured loan can be a bit difficult. No worries! That’s where unsecured business loans come to the rescue of small businesses. Unsecured loans are short-term loans (3-6 months) that give you financial relief in times of crisis. There is no need to put down security. The lender approves the loan after judging your creditworthiness and the monthly turnover of the business. You can get unsecured business loans with low documentation within 48 hours.
This is a short-term loan to suffice immediate cash flow needs. It acts as a buffer via securing a credit line for the business. There are no limitations on the number of cash withdrawals and loan payments. Once the limit is set, you can start using the money. The lender charges the interest on the outstanding balance of the overdraft, and not the whole amount. Business owners use a business overdraft to pay the pending bills, expand business operations, and pay the suppliers on time.
If you lack collateral or creditworthiness, cash flow finance comes to your aid. This is an unsecured short-term loan that allows you to access funds based on the present cash flow volume of the business. Business owners use cash flow finance to restock inventory, pay the employees, or pay the estate rent. The concept is borrowing from the profit you will make shortly. If your credit score is low, this is the best option to secure funds.
No business can run without equipment, but they can be on the expensive side. Even leasing the equipment can take a chunk of your capital. Here, we recommend equipment finance. Often enterprises need to upgrade their equipment or buy a new one to scale up and make more profits. When finances cannot suffice the business essentials, you can apply for equipment finance as a small business loan to fulfil your needs. This is a short-term loan, and the equipment you are buying becomes your collateral.
Are you interested in applying for any of the above? If yes, then spare no time to reach out to Broc Finance. They are the leading finance brokers of Australia, with decades of experience facilitating diverse small business loans. They will help you connect with the best lender and get you an appropriate loan product, sufficing your financial and business growth needs. Check out the website for more information.
Saroj is the Head of Lending at Broc Finance. He comes with 13+ years of experience in small business lending and has a knack of structuring complex deals and get the best outcome for his customers.
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