Quick & Easy Funding for Your Small Business
Australian small businesses face many challenges when seeking venture capital funding, or lines of credit. Typically, financing options are restricted to banks and financial institutions. The rigmarole that you are subjected to can prove disheartening, and hamstring your business ideas before they take root. Australian banks require stringent criteria to be met before they approve a business plan, let alone a small business loan. Australian business owners have been seeking alternatives to traditional bank loans and lines of credit.
According to statistics, Australia features some 800,000 SMEs, and 6/10 small business loans are rejected annually. This data was sourced by Othera PQ, and it indicates that the reason for the high rejection rate in Australia is that SMEs do not comply with the requisite risk profile set out by borrowers like banks and financial institutions. It comes as no surprise that the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell stated that most complaints that her department receives are related to banking and loan approvals.
Fortunately, there are many alternatives to bank loans in Australia. Their regulation-laden procedures are a disincentive to SMEs to seek financing. As such, a secondary industry for small business loans in Australia has taken root. Details of this now thriving enterprise are available with smallbusinessloansaustralia.com’s express lending facilities. Borrowers are encouraged to review the range of lenders that are now available in Australia. These wide-ranging services are ideally suited to small enterprises and medium-sized enterprises. The bigger the lender, and the more diverse its offerings, the better for the SME.
Some of the many factors that borrowers should consider include:
- The Bureaucratic Burden describes how quickly loan applications are reviewed and processed, and what paperwork is required by the lenders?
- How Easy Is the Application Process? This is an important criterion since it determines whether SMEs will be able to comply with the application requirements.
- What Types of Loans Are Offered? Small and medium-sized enterprises in Australia have a variety of loan requirements. These may be funding for purchasing vehicles, machinery, equipment, inventory, or acquisitions. The precise nature of the loan types provided by lenders will play an important part in Australian economic development.
- Accessibility to Funding is exceptionally important. Many banks and financial institutions incur a long ‘time to market’ in terms of providing the necessary financing for business loans. Once the regulatory requirements have been met, there is a lag period for review and approval and final release of the loan. Many small and medium enterprises require access to capital in a relatively short period of time. Flexible loan amounts are important, and next day loans of some AU$5,000 or more are typical for businesses down under.
Many of the top non-bank lenders in Australia can approve a loan application in as little as 60 minutes. Of course, it’s important to review the service offerings of these SME enterprises, and the best way to do this is authentic client reviews. Sites like TrustPilot and Google Reviews are preferred over on-site reviews by customers. The typical loan amount from a non-bank lender can range from AU$5000-AU$100,000, with a loan repayment period of 3 months through 1 year.
Several non-bank lenders are only interested in making short-term loan applications, so it’s important to check the APRs with these providers. In all cases, it’s important for SMEs to ensure that they can make the monthly repayments, and that no funds are borrowed unnecessarily. Fortunately, businesses are in a much more secure position than individuals in terms of legal requirements. It’s important to read up extensively on the loan application process to ensure that all aspects are understood before the loan is disseminated.