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Understanding what a small business loan entails is crucial in making an informed decision for your business’s financial future. A small business loan is essentially a financial lifeline, offering a lump sum of cash that’s repaid over time. This repayment includes the principal and a fixed interest rate, tailored to suit the unique needs of small businesses like yours.
Convenience and Flexibility: Repayment Options
One of the standout features of small business loans is their flexible repayment structure. You can choose from daily, weekly, or fortnightly options, making it easier to manage cash flow and keep your business running smoothly.
A Loan for Every Business Need
Whether you’re igniting a lifelong passion by starting a new business, seizing an opportunity to expand, or navigating through a tough season, there’s a small business loan designed for your specific situation.
Eligibility Criteria: Is a Small Business Loan Right for You?
But don’t worry if you don’t meet these criteria just yet.
We have loan options for businesses at various stages, including those that are just starting out or don’t have a steady revenue stream. Broc Finance has over 50 trusted lenders that our brokers have partnered with to bring you some of the best small business loans in Australia.
You can use a small business loan to fulfil multiple types of business expenses, or even invest into the expansion of your business. Here are some specific examples of how small businesses have used these types of loans:
| Borrowing Limits | |
|---|---|
| Loan Amount | $5k- $1M |
| Term | 3 months – 60 months |
| Can be used for |
|
| Repayments | Daily/Weekly/Fornightly |
| Security | May be required after a certain amount |
| Pre-Approval Time | Unsecured Small business loans: 2-4 hours Secured Small Business loans: 24 – 48 hours |
| Unconditional Approval and Settlement Time | Unsecured Small business loans: 24-72 hours Secured Small Business loans: 3-7 days |
| Low Doc Approval and Documents required |
|
| Low Doc Approval and Documents required |
|
| Interest Rates | Starts from 7.99% p.a. |
| Benefits |
|
*The information provided in critical information sheet is intended as a guide only. Please contact us for more information
It is our goal at Broc Finance to provide you with the most valuable and unbiased information so that you’re able to make the best decisions with your money. In pursuit of this mission, we’ve created our own business loan repayment calculator, so you can get a better understanding of what your loan repayments will look like when you are researching any loan.
It’s easy to use:
Please note: The estimated repayments are based on the simple interest rate and are for indicative purposes only based on interests generally charged by the lenders in this space.
Every business is different and actual repayments will also be influenced by other factors that lenders take into account for their own policy.
Watch the below video to know about small business loans, its eligibility criteria, documents requirement and the application process.
There are over 2 million Small and Medium Enterprises (SME) businesses in Australia which account for more than 99% of all the enterprises in Australia.
Most of these businesses are unable to get timely funding from big banks due to various lending criteria like limited trading time, lower scale of operations, no security, no profitability, bad credit history etc. and hence is bound to shut down prematurely without exploring the full potential in their business.
This shortage of timely access to funds for small businesses had created a huge demand for cash flow lenders in the Australian markets. Thankfully, the advent of technology has given multiple private cash flow fintech lenders who are super quick to get the loans secured in as low as 3-4 hours with least documentation. These lenders have the appetite to take higher risks and fulfil the needs of the small business owners in a timely manner.
Key Features of Small Business Loans in Australia:
When looking for a financing option, you may find yourself drowning in a sea of information online, with no idea which is the best business loan for your company. To save you time, we have compiled a list of some flexible small business loans that provide business financing that is best suited to your needs.
These loans are apt for small businesses that generally require quick hassle-free funding with the least documentation.
These loans are tailored for start-ups that are yet to have any business activities and have an asset / commercial property to pledge as security.
Generally, these loans are for businesses which had a bad credit history in the personal or business credit in the past.
This loan is for businesses which are yet to start trading or generally trading for less than 12 months.
This loan enables self-employed borrowers and small businesses to secure instant cash flow or business capital without the requirement to furnish supporting financial documentation typically needed for loan approval.
These loans are ideal for small businesses who require funding to acquire equipment for their businesses. These loans can be for a longer term and come cheaper as compared to a normal business loan.
We understand and share the pain of small business owners because we are a small business ourselves. At Broc Finance, our brokers always strive to find and secure the best financing options for all our small business customers.
Small business loans act as a quick fix to the cash flow stress in the business and borrowers can get anxious while applying this loan. However, there are few vital things which one should always avoid while applying for a small business loan.
Finding the small business loan with the right rate, terms and amount could be stressful. To avoid any unwanted outcomes, we work with our customers to find the best suited loan for your business plan and help you avoid these mistakes. Simply complete the application form or send us a message and one of our lending specialists will be in touch to discuss your financing requirement.
These are the basic documents you need to submit to apply for a small business loan:
Generally, small business loans up to $250k can be approved with basis low documentation.
For an unsecured business loan of more than $250k, you may be required to submit some additional documents considering the size of the loan.
Additional documents may be required depending on the type of small business loan you are applying for.
The small business loan application process is generally simple and based on a scoring matrix. Below are some of the factors we considered that we included in our scoring matrix:
The amount of a small business loan that is approved may vary depending on the industry in which a business operates. This is because each industry has its own method of collecting payments from customers. If your company primarily sells products directly to end-users (B2C), you may accept cash or credit card payments, which provide you with an immediate source of revenue, which is usually preferred by lenders. On the other hand, if your company primarily conducts commercial transactions with other businesses (B2B), where invoices are frequently used, lenders may view late payments as a risk, which may limit the amount of money you can borrow.
Lenders will generally consider the loan amount by evaluating a company’s cash flow and ability to service the loan. A higher average monthly income may allow you to borrow more money.
Though a small business loan can be obtained without any security, lenders give a higher weightage if the business or its directors are asset backed. It enables them to obtain a larger loan amount with better terms.
Credit score becomes an important factor in loan consideration for small businesses, which are mostly new and have a lower scale of operations. A higher credit score gives the lender more confidence to approve a larger loan amount and pricing, and vice versa.
Lenders may consider “time in business” as a factor in determining the business’s momentum. Lenders typically assume that businesses that have been in operation for more than a year are more likely to incur additional debt obligations. This, however, does not preclude new businesses from being approved for secured small business loans. It simply means that new companies may not be able to borrow as much as established companies. Your loan capacity will gradually increase over time as you make on-time repayments.
At Broc Finance, we think every company has its own special strengths. We’re here to assist you in showcasing them to lenders, so you can get the best loan for your small business that meets your requirements.
Gone are the days when there used to be long application forms to be filled manually to apply for a business loan. Apart from the long application forms, you were required to submit a number of documents and it used to take weeks or even months to get an approval.
Check the basic loan eligibility of your business as mentioned above
Once you complete your online application form. We get in touch to discuss your business requirement and advice the documents required.
Once we get all the documents required, we login your application with the most suited lender and get the loan approval
These loans can be used to meet multiple business expenses or for business expansion. Here are some specific examples for which a small business loan can be used is listed below.
With the advent of technology, the small business loan application has become simple and paperless without any hassle to take any printouts. All you need is to submit some basic details related to your business by completing the online application form and last 6 months bank statement of your business transaction account through a secured link provided by us. Additional documents may be requested depending on the type of small business loan you are applying for.
To get a secured small business loan, all you need to have is an ABN and free equity in your property.
To get an unsecured small business loan, you need to meet some basic qualification criteria such as:
– Have an active ABN;
– Be operating for more than 6 months; and
– Be turning over more than $5,000 per month in the last 6 months.the final approval.
In most of the cases, for a small business loan up to $150,000 you just need to submit a 6 month bank statement and a valid Identification proof to get an approval. For complex or large ticket loans above $150,000, you would generally be required to submit the financial statements, BAS and ATO transaction statements.
The lenders understand the nature of urgency for small business owners. You may get the funds into your account within 3-4 hours as well. On average it generally takes 24-48 hours to get an unsecured business loan approved.
There is no mandatory need to have security to get a small business loan. Small business loans can be obtained as a secured as well as unsecured facility. However, for a new or start-up business operating for less than 6 months, you would require security to get funded.
Yes, possible. However, to get a small business loan for a new or start-up business, you need to pledge a security against the loan.
The interest rate charged by the lenders differs from case to case depending on various risks associated with the business, like Industry, scale of operation, cash flow, credit history, asset ownership and term of the loan. For e.g. A borrower with poor credit history would be charged a higher rate of interest as compared to a borrower with a good credit history. However, in general the interest rates typically range between 10-20% p.a.
Generally, small business loans are for shorter terms and can be anywhere between 3 months – 36 months. In most of the cases, small business loans are offered for a 12-month period.
Traditional Banks do offer small business loans, but they always maintain a strict and lengthy screening process which makes it a difficult and time-consuming process for a small business owner.
Opposed to Banks, there are various non-bank lenders and fintech companies who specialize in providing business loans to small businesses. Broc Finance is dedicated to assist small businesses with an easy and streamlined process to obtain a small business loan through its panel of non-bank cash flow lending partners with possibilities of financing within 24 hours. Please get in touch to know more.
Lenders would run a credit check only after obtaining a consent from you.
The loan application is obligation free and there are no application costs involved. You’ll be charged an origination fee only after your loan is approved and disbursed into your account. The origination fees differ from lender to lender and generally ranges between 2%-5% of the loan amount. The origination fee is a one-off fee and is on top of normal interest charged on the loan amount. Please contact us if you wish to know more details.
We have lenders on our panel who generally lend to almost every sector, so essentially there are no restrictions (barring a very few industries). In case you are sceptical about whether you can get funded in your industry or not, please let in touch for a free consultation with one of our lending experts.
With advancement in technology, submitting a bank statement has become super quick and easy without compromising the security. On receipt of the loan application, we would provide you with a safe and secure link to share your bank statement with us. This process makes the loan approval smooth and fast as we can receive your business transaction account statement within minutes and proceed with the loan approval process instantly.
Please note: With increasing fraud and forged documentation, lenders are no longer accepting PDF bank statements.
Generally, lenders consider the cash flow of the business to arrive at your borrowing power. They look into various other fields such as your credit score, past bank dishonours, industry, number of years in the business, age of the promoter/directors, existing personal asset/liabilities etc. to make a lending decision on the file.
Getting a small business loan with bad credit history could be tough and expensive; however, it’s not impossible. We have tie up with lenders who are happy to look at businesses and give them a second chance who had bad credit history in the past but have robust cash flow at present. Please get in touch with us for a free consultation.
There are multiple lenders who offer loans under the SME recovery loan scheme. However, you need to meet their eligibility criteria. Please get in contact with us to know more about the same.
At Broc Finance, we endeavour to get the most adequate facility suitable to the business requirements of our clients. In most of the cases logged in through us, we try to get an indicative offer from the lender for our client’s consideration before proceeding with formal application and consent to credit check. This approach helps our clients to avoid unwanted rejections and credit checks which can significantly impact their credit score.
We would be happy to answer, if you have any other questions. Please contact us.
With over 15 years of experience in small business financing, we have facilitated customised business financing solutions for small businesses from a suite of 50+ lenders and 100+ products!
We work in the best interest of our customers by getting them a business loan on most competitive terms.
Our 5 star ratings, review and client testimonials can vouch for us. Read more about why our customers recommend us and why they keep coming back.
We understand the essence of time, so we don’t believe in wasting our customers’ time by giving false hopes. Transparent and clear communication is in our DNA.
Contact us today and discover how our expertise can help your small business thrive.
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