If your business is in need of some funding, you owe it to yourself to talk to a business finance broker at Smartline Rockingham. Many of the biggest businesses in Australia started out small and needed loans at many times during their existence. Here are some of the typical reasons for obtaining a business loan.
If you need more working capital for your business, a working capital loan may be perfect for you. This can be used for day to day operations, especially if you are in a transition phase where you need a “financial boost” until your revenue grows. As your business creates more revenue, you can pay back the loan. The only caveat here is that working capital loans are considered riskier than other loans and have a higher interest rate.
This loan is often made to small businesses. For example, a retail outlet may want a loan to purchase more inventory for the holiday shopping period. This kind of loan can be short term and can be paid off shortly after the holiday season is over.
If you need new equipment, you can either lease it or buy it. Buying it is usually the best option. Not only does it become an asset, but there are some huge tax benefits and write-offs. This loan can be taken out for a period of 10-15 years in many cases. We recommend doing a cost analysis first to ensure that you will profit by buying your equipment instead of renting.
If you have a track record of success, want to expand and need a real estate loan, lenders are very likely to say “yes.” Expansion is usually a sign that the company is successful and therefore a lower risk. It usually means a positive cash flow and high projected income for the future.
This can be a 25-30 year loan with the real estate used for collateral.
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Call a business finance broker at Smartline Rockingham today: (08) 9527 1800.