Small Business Loans for Women Entrepreneurs in Australia
Published on 2020-09-25
Category: Business Loans, Business Strategy
Here’s some great news for all women entrepreneurs seeking a small business loan in Australia. Today you make for one-third of the small businesses in Australia and this trend is only increasing by the day. In the last two decades, the number of businesswomen has gone up by 46% and these women entrepreneurs make up to 13% of employed Australian women.
A recent study showed that women start businesses with less capital than men and also find it difficult to secure capital for their business growth. But the good news is that small business loans are much easier to secure today than before. Read through to know how you can secure a loan for your venture and take your business on a steady growth path. We have tried to answer all the questions that may arise in your mind regarding small business loans for women.
Are there exclusive small business loans for women?
While there aren’t any exclusive small business loans for women, there are lenders who are focusing on industries and areas where women entrepreneurs dominate. These lenders are committed to supporting local businesses and therefore may provide loans at lower interest rates, which is why you should approach them.
Where can I apply for a small business loan?
To be eligible for a small business loan, you must be in the same line of business for at least 6-months to a year. Most banks don’t prefer lending small businesses or start-ups, because of their conventional selection criteria. If your credit scores are high and your business is profitably running for at least 2-3 years, they might offer you a secured loan, wherein you will have to pledge an asset or property as collateral. These loans come at fairly lower interest rates than unsecured loans.
In most cases, even when small business owners meet the above-mentioned criteria, the processes are quite tedious and time-consuming, as an application for a loan with the bank requires a lot of documentation including business plan, financial statements, P&L statements, etc. This is where alternative lenders play a significant role. They also have a quick and easy application process, which makes it easier for small business owners like you to secure a loan. This is one of the reasons, why most Australian entrepreneurs seek capital through non-bank lenders.
Know how a lender will evaluate your business or the types of information needed when you apply for a new business loan in Australia?
How do I approach a lender?
Any lender would want to know your business before approving a loan. So, it is important to give them a deeper understanding of what you do, the need for the loan and how will it be utilized. While it is confusing to understand which business lender will be the right fit for you, it is important to reach out to the right lenders since this increases your chances of loan approval significantly.
A business loan intermediary like Capital Boost works with multiple lenders and understand their criteria and terms well. This puts us in a better position to match your requirement with the right lender too. We also have a personalized approach where we talk to you before submitting your application with lenders, unlike most online loan aggregators.
What documents do I require to apply?
For up to $150K, most non-bank lenders only require your bank statements for 6 months and a copy of the driving license of the business owner. In case there are cash transactions, a business activity statement (BAS) might also be required by select lenders to process your loan.
How to choose the right loan and the right lender?
As there are various types of small business loans available namely secured business loans, unsecured business loans, line of credit, equipment finance and invoice finance, it could be quite overwhelming to choose the right one for your business and loan requirement.
It cannot be chosen just by looking at the interest rates and period of repayment, it needs a deeper understanding of the type of loan and lender criteria. It is always advisable to speak to a lending expert, who can provide you unbiased recommendations and suggest the right type of loan for you.
As we had mentioned earlier, for a secured loan, you need to pledge an asset as collateral and therefore the interest rates are a bit low. If you are unable to repay the loan, your asset is used by the lender to recover the loss.
In the case of Unsecured Business Loans, you need not provide any collateral, and therefore the interest rates are a bit higher, but it also comes with flexible repayment options and is the most preferred type of small business loan.
You can always seek the advice from lending experts such as Capital Boost, who will understand your business requirement, compare different loan products and lenders and match you to the right lender, and get you the right deal.
In such a case you need not worry about losing credit points by applying multiple times and also go on with your daily business, while the lending experts work towards securing a small business loan.
If you have decided on the type of loan you want to apply for and have prepared all the necessary documents, you can apply for a loan online within a few minutes. All you need to do is fill a form, upload the documents, and submit.
Some lenders also help you calculate the amount of loan you are eligible for through a simple form fill on their website. Some follow up with a call to understand your needs and collect more information to suggest the right product to you and match you to the right lender for your requirement. Alternative lenders are also known to make quicker decisions. You can secure a loan within a couple of days if your documents are already prepared and your business case is strong.
We at Capital Boost are striving to secure you the best loan possible. Call our lending expert today for a business loan.
Tagged in: Women Entrepreneurs, Loans for Women Entrepreneurs, Australian Women Businesses, Small Businesses in Australia, Small Business Loans, Small Business Loans for Women, Small Business Owners Australia
Published on 2021-12-06
How to Manage Cash Flow as a Start-up
One of the most critical aspects to manage in business is the Cashflow. Effective management of cash flow is critical to...
Published on 2021-12-01
Cash management tips for small businesses
Businesses are always trying to improve their cashflow, which is key to their future growth. Effectively managing c...
Published on 2021-11-26
3 Things You Should Know About Securing Loans in a Changing Financial World
In recent times especially after the breakout of the pandemic, loans have become critical to steading businesses around ...
Call our experts on 1300 360 530, or