Small Business Loans - How to Apply for a Business Loan?

Small Business Loans - How to Apply for a Business Loan?

Published on 2021-12-17

Category: Business Growth, Business Loans

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There are over 80 non-bank business lenders in Australia that service small businesses across the country. Each of these lenders have their own eligibility criteria and terms to determine the kind of businesses they fund. Since most of these lenders offer unsecured funding (loans without any collateral or security), it is only fair that they have stringent measures in place to ensure that they recover their funding on time. While the large number of lenders offer choice to small business owners who are looking for funding, it also creates confusion. Since each lender has specific requirements in terms of the industries, business sizes and credit score preferences, applications from business owners submitted online are most often rejected. This in turn affects the credit score for the business and makes it even more difficult to secure funding.

So how can one go about applying for a small business loan?

One of the easiest and preferred methods most small business owners in Australia adopt is to apply for a business loan through a business loan broker. Here are 3 reasons why:

  1. Understand your small business loan options

When you apply for a small business loan through a broker or intermediary, a lending specialist usually gets in touch with you to understand your business loan need. A brief discussion helps to understand the need for funding, documentation, the type of loan best suited to your need and history of past loans. This information helps the lending specialist ascertain the best loan options suited to your specific requirements and match you to the right lender.

  1. Improve your chances of loan approval

Having worked closely with multiple lending partners, business loan brokers often understand the criteria of each individual lenders well. The terms, their preferred industries, their risk appetite and other factors they consider while approving or rejecting a business loan. As a business owner, you might not have the exposure to this information. Hence, it is advisable to go with a business loan broker who can match your application to the right lending partner and improve your chances of securing a loan.

  1. Let the experts handle your loan application

As a small business owner, running the business efficiently is your topmost priority. And rightly so. This is why partnering with a business loan broker will help you immensely. They will guide you on the documentation, building a business case in complex situations and ensuring your funding is processed on time are some of the areas where a broker can help you, while you continue to focus on the business itself.

What happens once I apply for a business loan?

Once you apply for a business loan with a business loan broker like Capital Boost, one of our lending specialists will get in touch with you to understand your loan requirement in details. This is usually followed by a request for your bank statement which is used to ascertain your eligibility and review existing loans, etc. This step greatly helps the specialist set a realistic perspective and update you about your eligibility and possible interest rates, loan amount and tenure, etc. After due consultation with you, our specialist will apply for a loan with a non-bank lender who we believe has a higher chance to approve your application. A credit check is usually done only after your approval since this is vital to maintaining a healthy credit score. Once the lender comes back with a proposal, we discuss the same with you and once you are convinced, only then the application is processed. The entire process is seamless and takes very little time, in some cases, on the same day.

At Capital Boost, we have helped a lot of small businesses in Australia secure business funding to drive their growth aspirations. Our personalised approach helps us create solutions matched to your unique requirements. This in turn, improves your chances of securing a loan greatly. So, if you are looking for a small business loan, go ahead and apply for one now by clicking the apply now button on the website.

Tags: Small Business Loans, Business Loan FAQs, Business Loan Questions, Busines Loan requirements, Apply Small Business Loan, How to apply for Small Business Loans, Small Business Loan Brokers

 

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