If you own a business in Australia, chances are you may have had your share of financial difficulty in sustaining and supporting the recurring monthly expenses. Fortunately, there were banks and financial institutions that offer assistance to business owners like you in the form of business loans. Availing a financial facility or instrument like a business loan allows many business owners in Australia to sustain their operations until they are able to rely on their income to operate the business independently.
Business loans are available from many banks and lending institutions in Australia. These loans are designed to help companies or businesses that have either a short-term or long-term need for extra cash or funding. Businesses are able to fulfill their financial obligations and support the business while the banks and lending firms earn from the interest rates they charged across the duration of the loan term.
There are different types of business loans offered by a number of business loan providers in Australia. Each type is created or established to meet the financial needs of the business. Depending on the purpose for which you are borrowing money from the bank or lending firm, you can choose the type of loan that suits your requirements.
Types of Business Loans
Business Start Up Loan
This type of loan is intended for businesses that need funds to jumpstart your business. This type of loan is offered by most banks in Australia. The loan proceeds can be used for buying tools, equipment or supplies required to operate the business.
Business Expansion Loan
You may have an already established business but you think you can grow it further. In order not to disrupt the financial requirements of your established business, you can avail another type of business loan which is the business expansion loan. This is designed and intended to help business entrepreneurs who may have a need to buy additional equipment, or set up another office or sales outlet, etc. Anything that would help expand the business can fall into this loan type.
Business Inventory Loan
Some businesses in Australia are restricted in growing because they do not have adequate products in their inventory to support the demands of the customers. For this purpose, a business inventory loan may be availed. The loan proceeds may be used to purchase additional products, supplies or materials to add to the existing inventory. This would allow your business to effectively manage your inventory and meet the demands of your existing customers and target market.
Motor Vehicle Loan
Your business will be able to serve a wider range of customers if you have a motor vehicle to transport goods and equipment from your business office to the customers. A lot of banks in Australia offer vehicle lease and purchase options to meet this need.
Equipment and Tools Loan
Your business might require big industrial equipment in the production plants. Some banks and non-bank lenders offer a loan for the purchase of such industrial equipment and other tools. There are other banks though that offers a leasing option for the equipment you need. Depending on the kind of equipment you need and its cost, you may be advised to rent equipment instead of buying them. This type of loan covers both purchase and leasing options.
Business Property Loan
Your business may have grown big enough to require a bigger area for commercial transactions. Under a business property loan, you may acquire a commercial property in Australia where your customers or clients will be more comfortable transacting business in. Several banks and lending firms in Australia handle mortgage of commercial spaces, offering more flexible repayment terms and loan period.
Are you planning to venture into import-export or domestic trading in Australia? This type of loan is supported by the Australian government in a bid to boost domestic trading and the export industries. The Australian government forms a partnership with commercial banks in order to facilitate this loan to businesses engaged in the import-export and domestic trading industries.
If your business is set to expand and aims for industry longevity, seeking out assistance from business institutions that lends money to small businesses can be your saving grace at the early stage of your business. Having great liquid funds to keep the business going will create business strength.
Having presented some of the business loans type available in banks and private lending institutions, you now have an idea which one fits well for your business. You can also contact these small business loans firms in Australia to give you more advice and ideas on what to expect when acquiring a loan.