Finance options for small business owners

Are you a self-employed individual who is thinking about becoming a small business owner?

Article up to date as at 14th January 2020

This is an exciting step for anyone who has been a sole trader for a period of time and is ready to take their business to the next level.

However, a challenge many small business owners face is having sufficient funds and resources to tap into.

You may find that in order to expand your business, you need to invest in new premises, hire staff members, or purchase equipment and vehicles.

Fortunately, there are a range of financial solutions available to you as a small business owner, which allows you to access resources sooner and focus on expanding your business.

Commercial property loans

As a sole trader, you may be working from a home office, but once you hire staff, you may need to operate out of a commercial property so that you can service more customers. Leasing may be an affordable option in the short term, but in the longer term, buying a premise can provide you with more security. A commercial property is also an asset that can grow in value and be sold down the track. There are different financing options and lender requirements when purchasing commercial property, and your Mortgage Choice broker can help suggest the best product for your needs.

If you have any questions regarding finance options for small business owners, check out our FAQs.

Equipment finance

Depending on the nature of your business, you may need to purchase equipment such as vehicles, forklifts, IT hardware, and industrial machinery. Instead of spending large amounts of money to purchase these items, you can use equipment finance. This allows you to rent or lease items over a set period, with repayments spread out over the life of the equipment. An advantage is that you do not need to save a deposit and no GST is paid on the loan or the repayments. Depending on your equipment finance situation, you may be able to earn tax benefits.

Small business loans

As a small business owner, you can take out a loan to help fund the growth of your business. There are many kinds of loans to suit different business needs and situations. For example, a loan can be used to cover a one-off expense such as a renovation, or it can be used to improve your business cash flow. Common loans include commercial loans, working capital solutions, secured business loans, and development finance.

Make an appointment to speak to your local Mortgage Choice broker who can answer your questions and help you find a suitable financial solution for your business’ current and future growth needs.

Posted in: Small business