Business loan

Starting and growing your business can be a costly venture. Sometimes, waiting to save up to fund a business isn’t viable. Thousands of Australian business dreams are supported by business loans.

Compared to mortgages, there are some extra steps involved with applying for a business loan. Mortgage24 are brokerage experts and can help show you how to apply for a business loan.

Here are some steps and things you need to help get approved for a business loan:

Understanding your business needs

Before meeting with lenders, it’s good to understand your exact business needs.

What do you need to apply for a business loan?

How much do you want to borrow?

What repayments can you afford?

You can use our repayment calculators to help you understand what you are up for.

Your credit rating

Whether you are a new or experienced business owner, having a good credit rating is vital to helping get approved for a business loan.

A solid business plan

The key to a successful loan application is a solid business plan. Lenders want to see what a business aims to achieve and how it plans to run the business. Good business plans give lenders confidence that the money they loan will be paid back.

Risk Mitigation Plan

To protect your business and the loan you are applying for, you may need a risk mitigation plan. This can demonstrate how you will reduce the risk to yourself and the lender. Mortgage24 can help you with there.

Providing an exit strategy

Lenders want to know their investment is secure. To improve your chances of getting approved, organise an ‘exit strategy’ as part of your business plan. Some lenders may want up to three different scenarios to secure their investment.

Getting everything together

When you are ready to meet your broker, have your ID, tax records and other related paperwork ready. Have your complete business plan in hand. Have a clear idea of exactly how much money you need for your loan and the key features you need in a business loan. Getting everything prepared before you meet with your broker can save a lot of time and decision making that has to be made down the track.

Contact Mortgage24

The next step is to speak to us. Our brokers can help you figure out which kind of business loan you need to succeed in business. We can explain all the ins and outs of a loan including its fees, interest rates and securities.

Types of Business Loans

Because businesses come in all different shapes and sizes, so do our loans. There are 3 different types of business loans and which one you need depends on the stage of your business.

Start-up finance

If you are ready to start a new business, start up finance is an option to fund your dream. However, getting approval for start up loans can be difficult. Be prepared to have an amazing business plan and have your personal finances in order in case you need to use a personal asset – eg: home equity – as a security for the loan.

Overdrafts and quick cash flow

If business isn’t going as planned and you need some quick cash flow, businesses may qualify for an overdraft. Overdrafts can provide greater flexibility than other business loans as they allow access without much prescription and at better rates than those offered on regular loans.

Expansion financing

For businesses looking at expanding – renovating, purchasing new equipment, setting up new locations, breaking new into new markets – there are term loans. Normally secured against a valuable asset – either personal or already existing in the business – term loans are fully drawn advances with scheduled repayments.

Regardless of what kind of business you are financing, it is always important to have a good business plan.

To give your business the best chance of success, talk to Mortgage24 and explore your commercial financing options today.

Business loan

Business loan

Types of Business Loans

Start-up finance

Overdrafts and quick cash flow

Expansion financing

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