What are the benefits of a business loan?

• Fuels business growth
• Manages cash flow more effectively
• Takes advantage of new opportunities
• Improves financial health

What are the features of flexible repayment plans?

• Allows choosing a plan that suits cash flow

Is collateral needed for business loans?

• Some business loans don’t require collateral

What are the interest rates like for business loans?

• Often come with competitive interest rates

How quickly can business loans be disbursed?

• Can be processed and disbursed quickly

Why would your business need finance?

• Expansion
• Putting stock on the floor
• Keeping up cash flow
• Brand new equipment
• Time to refinance

What are some business finance options?

1. Asset & Equipment Finance
   • Used for purchasing new equipment, technology, machinery, and vehicles
   • Benefits include generating immediate income, preserving working capital, and fixed repayments for better budgeting
2. Invoice Finance
   • Accessing cash from invoices already issued before they’ve been paid
   • Provides a cash advance based on sales already made
3. Working Capital Loans
   • Covers immediate day-to-day costs and helps fill cash flow gaps
4. Term Loans
   • Used to buy commercial real estate or existing businesses or franchises
5. Self Managed Super Fund Loans
   • Uses super funds to help purchase commercial property
6. Unsecured Loans
   • Quick access to cash without using any security

What are some features of business loans?

• Overdraft facility
• Line of Credit (LOC)
• Interest only terms
• Variable or fixed interest rates
• Additional repayments
• Redraw facility
• Offset account

What are the different business structures?

1. Sole Trader
   • Suitable for business owners just starting out
   • Pros: Cheap and easy to set up, simple tax reporting
   • Cons: Unlimited liability, limited options for growth and capital raising
2. Partnership
   • Pool resources with a partner to build a stronger business model
   • Pros: Shared resources, limited liability for capital-only partners
   • Cons: Requires trust, potential for disagreements
3. Company
   • Suitable for businesses with significant turnover needing asset protection
   • Pros: Lower tax rate, limited liability, income-splitting, capital raising
   • Cons: Costly to set up, ongoing reporting requirements
4. Trust
   • Suitable for businesses with multiple family members involved
   • Pros: Better asset protection, income-splitting, estate planning benefits
   • Cons: High initial and ongoing costs, assets not completely protected

How do banks assess business loans?

• Banks rank applications based on risk, with each business graded from 1 to 15
• Applications are assessed on a case-by-case basis

How do I qualify for a business loan?

• Factors considered include the amount of money put into the deal, business experience, type of business, and security property
• Existing businesses in lower risk industries are more likely to qualify

How much can I borrow with a business loan?

• Typically, amounts range from $250,000 to $50,000,000, with stricter criteria for loans over $5 million

What should I consider before applying for a business loan?

• Decisions to make: Loan amount, type, period, and security property
• Planning and preparation: Understand key financial figures and prepare a detailed business plan
• Lender’s view of risk: Consider business history, management risk, credit history, and market knowledge
• Business loans on offer: Research fees and interest rates, and consult with a business advisor or accountant

How can I prove my business income?

• Common ways include projected cash flow statements, bank statements, tax returns, and Year To Date (YTD) income

Can a guarantor improve my chances of getting a business loan?

• Yes, a guarantor can ensure the business loan will be repaid, improving chances of approval