It’s not always easy for startups and small businesses to acquire a loan, especially these days where almost everything is affected by the virus outbreak. What are your options then for funding your business?
In 2018, about 2.3 million businesses in Australia were actively trading, according to the Australian Bureau of Statistics (ABS). Since then, new businesses continue to emerge every year.
It takes a lot of hard work for entrepreneurs or business owners to achieve their goals. Starting your own business doesn’t come cheap as well. But there are options to choose from that could help support your endeavors.
With more online lenders and established banks coming into the market, businesses are given more options that give them new opportunities for growth. That means you no longer have to drain all your personal funds or seek other business partners.
However, there’s a criteria that you have to meet so loan providers can grant you what you need. Some may require you to have a trading history or be in operation for quite some time with a minimum annual revenue between $50,000 to $120,000. Others might want to ensure that you have a good business credit score, which could be between 450 to 833 or over.
But what about startups? You might need to think about your budget first–how much you really need to borrow and how much you’re going to pay back. Although, some lenders will offer rates according to the particular needs of your business once you’ve applied.
ALTERNATIVE FUNDING OPTIONS
If a business loan is not for you right now, other funding options are available through government assistance. The current pandemic had a negative impact on so many businesses, which is why the Australian government is offering assistance.
One is through Backing Business Investment (BBI) which is an incentive given to support business investment and economic growth for a short period. Another is boosting cash flow for employers where $25,000 is provided to small and medium-sized businesses with a minimum payment of $2,000 if your business is qualified.
Aside from business loans, other types of business finance are available, which includes short-term business loans, business overdrafts, invoice financing, and equipment financing.
Contact a financial advisor today to help meet your needs. Get in touch with us at [email protected]