Forward Solving Business Supply Issues
If the term ‘supply issue’ sounds foreign you just need to think of a time you haven’t been able to get something in the shops.
Business owners and consumers will be familiar with this right now as there have been a range of issues internationally and domestically impacting the productivity of ports and supply chains worldwide over the last year.
Construction businesses are one of many industries feeling this big time with severe shortages of materials.
What’s that got to do with finance?
That old adage of “if you fail to plan, you plan to fail” is much more than a cliché in business.
Business owners need stock and supplies for the December trading period and construction related business will need capital to pay holiday wages and their outgoings that will continue throughout the January period they’ll be shutdown. If business owners wait until December to apply for the finance they need they’ll be applying at the busiest time of year for a lot of lenders.
This means potential delays that could be avoided if you’re making plans about the capital you need in the future now.
How to choose the right business loan?
It depends on your needs.
A Line of Credit could be a great option if you’re investing into supplies for your business and you will recognise the revenue in sales. The benefit of this is you’ll get an extension to supplier terms allowing you to preserve your own cash for wages and stretch your dollar further.
No doc business loans secured by property work for those wanting access to more than $300,000 with approvals and settlements (to approved applicants) occurring in days compared to long turnarounds that can be experienced at banks. Many of these loans feature the ability to capitalise interest which means they’re an aid to cash flow if you’re investing into an opportunity that will pay off months or more down the track.
Unsecured lenders traditional clientele of pubs, cafes, restaurants, retail, gyms and others that have experienced lockdowns are starting to fill with energy and clientele again. There are many lenders in this space – some offering repayment holidays of 10 weeks meaning you can use the capital now and start making repayments after you’ve generated a return. Take advantage of the hot competition in this space with lenders assessing income from times of more normal trade and not the lockdowns when many of these business owners had no income at all.
Looking to assets, equipment or machinery? Then asset finance is your go to with terms that can stretch to 5 years and beyond you can pay for your asset while it generates revenue and income for your business. The advantage of asset finance is rates are much lower than unsecured loans and repayments are typically smaller for the same size loan. The benefit this brings to cash flow is it supports you to scale and grow your business faster. You can even get access to asset finance loans up to $250,000 without financials or cash out equity in existing equipment to raise capital. How good is that?
If you can think of it we can finance it and, whilst fast finance is definitely a service we help business owners with a lot, it pays to plan ahead.
P.S. Here’s a list of some of the solutions we’re doing for clients at the moment.
- Funding for small scale residential property development and extending construction terms.
- Unsecured lines of credit (lots of these).
- Refinancing balloon payments and car finance for credit impaired business owners.
- No doc property loans with repayments capitalised for 12 months.
- Taking care of tax debt.
Get in touch to talk through your situation.