Business Loan experts on the Gold Coast | Mortgage Choice in Southport & Varsity Lakes
When you’re in business, having the right finance and risk planning in place can mean the difference between thriving and surviving.
And no one is better placed to understand your needs than another small business owner like us, Mortgage Choice in Southport & Varsity Lakes. Our team can help you understand the finance options available and do all the legwork in sourcing the right business loan for your needs.
Reasons for taking out small business loans
A business owner might take out a loan to cover one-off expenses such as buying new equipment, paying for training, or renovating their facilities. Alternatively, loans might be used to improve business cash flow and provide flexible access to a pool of funds to be called upon as needed.
Varieties of small business loans
There are a variety of loans available to businesses. A business loan can be structured either on an upfront basis, where the entire value of the loan is withdrawn at once and paid back in regular instalments, or it may be on-call, with payments determined by the amount of the loan that the business has drawn down.
The different business loan types naturally come with varying interest rates and repayment conditions.
Line of credit or equity loans can provide access to funds by allowing the business to draw on an account balance up to an approved limit. These loans are highly flexible and are commonly used to fund smaller capital requirements.
They are usually secured against property. This means that the interest rate for a line of credit is likely to be lower than that for an overdraft, although failure to make payments will place the secured asset at risk of repossession.
Building your business
A second loan type is a Term Loan, which is a fully drawn advance aimed at funding long term business investments that improve the earning potential of the business, such as new equipment.
A fully drawn advance will generally be structured over a fixed term with scheduled repayments and will be secured by a mortgage over a residential or commercial property, or other acceptable assets.
The use of security generally means that the interest rate will be lower than for other business loans, and it may be structured to a fixed interest rate that delivers certainty in terms of repayments.
If the goal of the business loan is to provide access to capital equipment, another option could be lease finance. This is where, for example, the business enters into a contract with a finance provider who buys the required asset, and then the business leases the use of that asset for a fixed amount over the life of the contract. When the contract ends, the business has the option to renew the lease on the existing equipment, take out a new lease on new equipment, or arrange to buy the leased item outright.
Business credit fitness
To qualify for a small business loan, your business must be in sound financial shape. It may also help if you can provide some form of security against the business loan, such as commercial or residential property. If the loan is unsecured it is likely to come with a higher interest rate.
If you're seeking a small business loan, talk to your local Mortgage Choice expert at Mortgage Choice in 220 Varsity Parade, Varsity Lakes on (07) 5531 2999.
We will discuss the different business loans and lenders so you have a loan that will be best suited to your business.
Generally, our minimum Small Business loan size is $500,000, however smaller loans may be considered on a case by case basis.
Check out our helpful resources for small business owners:
- Blog - When should I consider a loan for my business?
- Video - We understand small business!
- Video - How to equip your business for growth!
Looking for business finances?
We can guide you and give you the information you need to find the right equipment finance package for your needs. We offer a wide choice of lenders to find you a great deal on equipment finance for your business. ~