What are small business loans?

Small businesses often require extra funds to grow and expand their operations. A small business loan is a financing option that provides businesses with the necessary funds to meet their financial needs. These loans can be used for a range of business purposes, including purchasing inventory, hiring new employees, or expanding the business’s physical space.

If you’re a small business owner in Australia looking for financing options, a small business loan could be the solution you need. At Ownright Custom Finance, we offer a range of small business loans designed to meet the needs of businesses of all sizes and industries. In this guide, we’ll explore the different types of small business loans available in Australia and how they can benefit your business.

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Types of Small Business Loans

Secured Business Loans: This type of loan requires collateral such as property or equipment to be put up against the loan. This reduces the lender's risk and often results in a lower interest rate for the borrower.
Unsecured Business Loans: This type of loan requires collateral such as property or equipment to be put up against the loan. This reduces the lender's risk and often results in a lower interest rate for the borrower.
Line of Credit: A line of credit is a flexible type of loan that allows businesses to withdraw funds up to a pre-approved limit. Interest is only charged on the amount withdrawn.
Equipment Financing: This type of loan is used to purchase or lease equipment for the business.
Invoice Financing: This type of loan allows businesses to use their unpaid invoices as collateral to secure a loan.
Business Credit Cards: This type of loan is similar to a personal credit card but is used for business expenses.

How to Apply for a Small Business Loan

The application process for a small business loan typically involves the following steps:

1

Research lenders and loan options to find the best fit for your business needs.

2

Gather all necessary documents, such as financial statements, tax returns, and business plans.

3

Gather the required documentation, such as bank statements, financial statements, and tax returns.

4

Wait for the lender to review and approve the loan.

5

Once approved, review the loan terms and sign the loan agreement.

6

Receive the funds and start using them for your business needs.

Advantages of Small Business Loans

Increased Working Capital: Small business loans can provide businesses with the necessary funds to cover day-to-day expenses and invest in new projects or ventures.
Improved Cash Flow: With a small business loan, businesses can better manage their cash flow and cover unexpected expenses.
Opportunity For Growth: Small business loans can help businesses expand their operations and enter new markets.
Tax Benefits: The interest paid on a small business loan is often tax-deductible.

Great options and great rates

When you’ve tried with every other lender or bank and not been satisfied, that’s where we come in. We’ll create a tailored and customised solution for you!

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Did you know that according to recent statistics, approximately 80% of small businesses in Australia take out business loans to help fund their growth and operational costs?

Considerations when applying for a Small Business Loan

Interest Rates And Fees: Be sure to compare interest rates and fees across different lenders to find the best loan for your business needs.
Repayment Terms: Consider the repayment terms and schedule of the loan to ensure it aligns with your business's financial situation.
Collateral Requirements: Secured loans may require collateral such as property or equipment, which can be a risk for businesses.
Credit history: A business's credit history can impact loan eligibility and interest rates.

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