Avoiding Predatory Lenders When Applying for Bad Credit Loans
Key Takeaways Key Point Description How Predatory Lenders Can Harm Businesses Predatory loans trap businesses into arrangements that harm them. These loans have exorbitant interest rates, hidden fees, unusually short terms, and aggressive practices that put businesses under pressure. Recognising Red Flags Some red flags borrowers must watch out for include lenders lacking transparency, employing […]
Basic Eligibility Criteria for Business Loans in Australia
Key Takeaways Key Point Description Common Eligibility Requirements Some common business loan eligibility requirements are demonstrating a capacity to repay the loan, acceptable credit score and history, appropriate security (if not applying for an unsecured business loan), guarantees, as well as appropriate supporting documents. Factors Influencing Eligibility Factors that can affect your eligibility include serviceability, […]
The Importance of Financial Statements to Loan Approval
Key Takeaways Key Point Description What are Financial Statements? Financial statements (financials) are essential records detailing a company’s financial performance, including historical profit and loss and assets and liabilities. Lenders rely on them to gauge a business’s ability to repay loans, while borrowers utilise them to demonstrate their financial health, increasing the likelihood of loan […]
The Importance of Emergency Funds for Loan Repayment
Key Takeaways Key Point Description Why Do Businesses Need Emergency Funds? Businesses need emergency funds to ensure they meet all financial obligations even in the face of unexpected circumstances like economic downturns, natural disasters, global events, legal issues, and more. The Importance of Emergency Funds for Loan Repayments Key benefits of an emergency fund include […]
What are Personal Guarantees?
Key Takeaways Key Point Description Definition A personal guarantee is a commitment made by a director to repay a loan in the event that the business itself can’t do so. In case the business defaults on the loan, the guarantor/s will be responsible for paying the loan instead. Purpose Personal guarantees reduce the risk for […]
The Impact of Bad Credit on Business Loan Applications
The Impact of Bad Credit on Business Loan Applications Key Takeaways Key Point Description Understanding Bad Credit and Its Causes Factors like late payments, defaults, and high debt levels contribute to a poor credit score. Bad credit can significantly impact a business’s ability to secure financing from traditional lenders like banks. The Impact of Bad […]
The Basics of Trade and Import Finance
Key Takeaway Table Key Point Description Definition Trade and import finance are a line of credit solution for business owners seeking to pay for material supplies. Using a pre-approved line of credit, businesses can use Trade finance to pay for their supplies and have between 60 and 210 days to pay it back. Importance of […]
Business Term Loans Explained
Key Takeaway Table Key Point Description Definition A traditional term loan involves getting a lump sum from a lender and repaying the amount over a set period in regular instalments plus interest. Business owners can obtain term loans from both bank and non-bank lenders, but the specific terms and conditions may vary widely. Uses for […]
The Impact of Credit Scores on Business Loans
Key Takeaway Table Key Point Description Understanding Credit Scores A credit score is a numerical value that represents the creditworthiness of a business or individual. Several factors can determine your credit score, including credit history, amount of debt, and repayment history. A higher score is more attractive to lenders because it demonstrates that a business […]
Equipment Finance Options in Australia
Key Takeaway Table Key Point Description Definition Equipment financing is a range of financial products that enable businesses to access essential plant & equipment. With equipment financing, businesses can get any equipment, from computers to heavy machinery, without paying upfront. Benefits of Equipment Financing Equipment financing offers several benefits for businesses. It provides immediate access […]