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Emergency Business Loans – Risk vs Reward

As we find ourselves in the middle of a global health crisis brought on by COVID-19, there comes a point where protecting physical health comes at the expense of our financial health. Employees at risk of carrying the virus are being forced to stay home. Spending habits have completely changed. The stock market has crashed. The list goes on… But what does this mean for your business? Cashflow is likely to be stretched within any company at this time, particularly within business start-ups. If you don’t have much money in the reserves then how can you keep your business afloat if the worst does happen? Emergency Business Loans can provide a fast source of income for when things don’t go to plan. This sounds great, but what are the risks?

What Are Emergency Business Loans?

Emergency business loans can provide a fast source of income to give your business the cash injection it needs during tough times. They are usually granted quickly and you don’t always need a great credit score in order to be approved. But they do often come at a cost, including higher interest rates than a standard loan. Emergency loans come in many forms. These include unsecured personal loans, credit card cash advance loans, payday loans and even pawnshop loans.

Emergency personal loans

The great thing about emergency business loans is that they can be processed extremely fast. You can expect to receive an emergency business loan within days of approval. Depending upon your credit score, you might qualify for an unsecured personal loan. This means that the loan will not be secured against any assets, such as property or a motor vehicle. Personal loans usually have fixed interest rates and can be paid back over a set period of time. Before taking out an emergency personal loan, you should first ensure that you will have the funds available to pay it back, otherwise, you will wind up in a worst financial position than you started in, along with your credit history taking a battering.

Emergency cash advance loans

It is possible to use the remaining balance on a credit card to take out as a short-term loan. This will mean a higher interest rate than normal and this rate will also be relative to how much you take out. So be wary of how much you do borrow via a cash advance loan.

Emergency payday loans

Unless you’re expecting an influx in cash in the very near future but are in a desperate and immediate need for cash to tie you over, for the time being, a payday loan is a risky option. APR’s can be as high as 400% and need repaying in full, rather than in instalments. This should be a last resort option. It’s easy to become trapped in an endless cycle of re-borrowing in order to pay the last payday loan off.

Emergency pawn loan

Another last-ditch option here. You can have personal items valued by a pawnbroker, of which they will use as security in order to back the loan. And if you find yourself unable to repay the loan, your pawned item will be listed for sale.

Are There Alternatives to Emergency Business Loans?

Your personal credit score will not be affected by your business loans. Nonetheless, you still need to submit your personal credit rating. You also need to prove your revenue for a year or two. Banks have tightened their lending criteria in recent times and often require financial history or in-depth account records to assess the capacity of the business to handle their financial obligations. This means that applying for emergency business loans through a bank can be a tedious, time-consuming process. For this reason, if you need funds fast, then banks aren’t a great option.

Emergency business loans may come at a higher cost for borrowers with no proof of income and a poor credit rating. When this happens, it is advisable to search for other options. Here are two alternatives which could help you establish or maintain your business especially when there is an urgent need for funds:

Line of Credit

Do you have a business account with a bank, but don’t qualify for its traditional business loan? You can apply for a line of credit instead. A line of credit enables you to access extra money whenever you need it. This is because they don’t have a fixed term, unlike personal loans. So, you can use it without applying for another loan. You also only pay interest on the amount you have borrowed, not your entire credit limit. However, usually, interest rates are usually variable with lines of credit, meaning that they can fluctuate up or down. You also can’t expect a quick turnaround with a line of credit because it may take weeks before it gets approved. Yet, it can still be a very useful resource for future business emergencies.

Specialised Lenders

Specialised lenders like Australian Lending Centre cater to businesses that do not qualify for traditional emergency business loans. ALC understands that business must continue as usual despite any financial drawbacks.

Considerations Before Taking Out an Emergency Business Loan

If you want your business to keep operating, you need the right funding to pull you out of problematic financial situations. There are also some management decisions that require immediate cash to sustain growth and avoid serious fallbacks.

What are the things to keep in mind when applying for emergency business loans?

Determine the business’s needs and the amount you need to meet it

It is important to have a clear idea of what you really need before you sign the loan application form. It is very easy to lose track of what you intended to do from the start if you don’t have a clear understanding of your needs. Remember that the amount must not be greatly higher than your actual needs. When running a business, it’s important to remember that the costs must be lower than the profit. Otherwise, you will end up spending more than what you actually earned and your business will suffer.

Review your credit history

Have you missed or been late on some of your previous debt repayments? If so, why did it happen? Before you apply for an additional loan, make sure that you have a good budget in place to avoid repeating the same mistake.

Specialised lenders may offer bad credit business loans, meaning they can still approve your loan application despite negative credit history. But reviewing your credit file is good to practise. You may find that there are defaults or judgements which have been incorrectly listed. So, before you send your business loan application, make sure that your credit file is accurate and up to date. Companies such as Clean Credit are able to quickly and easily assess your credit file and repair it if required.

Study your financing options

Specialised lenders may offer better terms than traditional banks, especially if you don’t have a stellar credit rating. Review the company and its loan products, and compare them with other financing institutes. Check if the financing procedures are safe and secure and if you will be able to save more money in the process. It is also important to talk with the loan officer and ask about the details of the loan, including its comprehensive terms and conditions.

Always consider your business plan when applying for a loan – make sure that the amount you borrow and the financing agreement will support your plans. Use every cent you get to support your goals and to build a solid credit history so that you can quickly access business loans with better rates in the near future.

Emergency business loans from specialised lenders are usually approved between 24 hours and 7 days – so it is advised to create a budget before you send in your loan application. Not only will it ensure that you will use the money exactly as you planned, but it will also keep you from defaulting on your loan repayments.

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Short Term Loans Business Consolidation Loans Business Loans Self Employed Short Term Business Loans

Short Term Loans Facts You Probably Don’t Know

Short term loans are convenient and quick ways to get money in a frenzy. You don’t have to worry about a credit check because many lenders offer no credit or poor credit loans. If you have a stable income, you’re over 18 and you’re willing to pay off a loan in as short as two weeks’ time, you have a great chance of qualifying for a loan. A short term loan is also a very potent financial tool that can help you break the cycle of debt and say goodbye to high-interest credit card debts. Read our short term loans facts now and take advantage of this useful source of finance.

How does a short term loan work?

It takes only a few minutes to fill out the application form. In 15 minutes or less, you can get the result of pre-assessment. Lenders will ask basic questions with a soft enquiry such as your income and age and the amount you want to borrow. In most cases, when you apply for quick cash like 90-day loans, lenders will review the information you provided, ask for your income verification and send you a loan offer.

What loan amount should you take? 

Depending on your financial situation, a lender may offer a high loan amount. If you don’t need all of it; don’t take the full amount. Lenders often extend higher amounts of short term loan to earn more money in the form of interest. Stick to the original amount you intended to borrow—which must be limited to the amount of money you need to meet your current need so that you can easily pay it back as soon as you can.

alc simple application process

How long is the repayment period?

Short term loans can be as short as two weeks to three months, or up to 1 year. Often, borrowers pay back the money back in full within 90 days. If they receive their salary twice a month, they pay back a portion of the loan into bi-weekly payments. The lender can break it into 3 monthly payments, 6 monthly payments or more depending on your income. Australian Lending Centre offers flexible repayment terms.

What fees are included in the monthly repayments?

One of the more complicated short term loans facts concerns the fees. The repayment amount includes the interest rate and fees on top of the principal amount of the loan, divided into several payments. The repayment amount each period depends on the total cost of the loan including the amount you borrow.

It is important that you review the terms of the loan, especially the loan amounts, interests and any fees before you accept the offer. If there are any hidden fees or the interest rate is too high; consider declining the loan. It is important to enquire about the interest, and completely understand the loan agreement that you are entering before you sign.

Why do people prefer short term loans that regular loans?

Convenience is one of the top reasons why borrowers choose a short term loan over bank loans and other loan products. It has minimum documentary requirements and an easy income verification process. The review process is extremely quick. Short term loans are a convenient and easily accessible means of acquiring money fast.

Business loans typically require a business plan and extensive paperwork. With short term loans, you don’t have to show any proof or supporting paperwork as to where you are spending the money. Bad Credit Loans also offer Short Term Loans. If your credit history is bad due to a default, judgement or blackmarks you may still be eligible for a loan with no credit check. 

A short term loan is a reliable and flexible financial resource. In times of emergencies, a short term loan can prove to be your saving grace. Unlike traditional loans, you can access the money within 24 hours. Pay it off in just a few weeks or months. Short term loans don’t require collateral. If you have missed payments your assets are still safe.

How should I choose a lender?

There are multiple online lenders promising cheap interest rates, low fees and high amount of loan. But, don’t be fooled, some of them are either scams—asking for advanced payments before releasing the money, or those that charge hefty interests and fees, plus hidden costs that could probably put your deeper into debt.

Look for a credit provider with the following characteristics:

  1. It provides equal opportunity for affordable loans for people with good or bad credit. A stable lending company profits from offering quality products and reliable service, not because it squeezes money from its borrowers.
  2. The loan process is hassle-free. If you qualify, the lender would tell you right away and will make the money available in less than a week. It has a reliable screening system and credit evaluation criteria that allows it to screen creditworthy applicants as quickly as possible.
  3. It offers affordable interest rates, knowing that all borrowers—those with an excellent record or those with bad or no credit record at all must be given reasonably priced loan products to help them out in times of needs.

Now you know the short term loans facts, enquire with Australian Lending Centre to receive professional advice.

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Short Term Business Loans

Are Short Term Loans a Good Option for Small Business Owners?

It goes without saying that a business is doomed to go under without proper funding. Small companies are more prone to dying out, at least in the beginning, if funding isn’t injected into them. If your small business is however growing, you may also need funding to help expand your operations.

In both cases, a short term business loan may be your saving grace.

What are short term business loans?

A short term business loan is a fast and flexible loan type, that can help improve your business cash flow. Short term business loans are typically quick to access and require minimal documentation. They are generally used for the following reasons;

Cover a business initial start-up costs

  • Pay staff
  • Purchase inventory or equipment
  • Pay for emergency situations
  • Purchase stock
  • Pay BAS or Tax Payments
  • Working Capital
  • Marketing or Advertising.

The benefits of short term business loans

Quick funding

Short term loans provide immediate aid to business owners that need it. The process is quite short, and the requirements are easy to fulfill. To give you a hint of how quick the funding is, the approval period of a short term loan can be 24 hours.

That, of course, does not apply to a large loan. Bear in mind that you can use this money to seize some opportunities; they’re not only for worst-case scenarios (going bankrupt or risking closure, for instance).

They are given to people with bad credit score

Not only are these loans given in a matter of hours (depending on the policy of the lender, really), but they are handed out to people who would be rejected by banks on account of their low credit score.

In this light, short term loans are life-savers. Given that they are short-term, creditors know that you will be able to pay the loan back, even if your credit score is a little low.

Short term business loans can be given for a variety of purposes

You can use the money from a short term loan for any business-related expense. This may include; an investment into a product or service that will better the business such as a marketing campaign. No matter what you need, you’re set with a short term loan.

Drawbacks of Short Term Business Loans

Smaller sums of money

Short term business loans may not allow you to borrow large sums of money. For example, If you need to borrow $50,000 you may not be eligible for a short term business loan. Bigger sums of money are not given out as a short term loan because of the nature of the loan, which has to be repaid in less than one year.

High-interest rates

Many lenders know that, once you’re looking for short term loans, you’re probably in dire straits. Unfortunately, this generally translates to higher interest rates. It is therefore important to do your research and make sure that you find the right lender. This way, you can at least make sure you’ll be going with the one that will take the least from you.

Other strings attached

Apart from the high-interest rates, you may be required to pay some other additional fees imposed by the lender (depending on each lender).

Risk of losing the collateral

Short term loans are usually secured by collateral, even though they’re basically to be repaid within a few months. Should you default, you could lose your car or whatever it is you secured the loan on.

People seem to think that secured loans are so much better than their unsecured peers. If you are 100% certain that you can repay the loan, consider a secured loan.  If possible, always get short terms loans without any collateral. There’s no way you will default on a loan like this. It’s almost impossible, given that the sum of money you’ve borrowed is quite small.

Loans with short term make sense for small business, but they also have some unpleasant downsides. If you have a financial advisor in your company, it would be a good idea for you to consult with him/her before making a decision. If you don’t have an advisor, you can speak to one of our expert loan consultants at Australian Lending Centre.

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Business Loans Bad Credit Loans Business Consolidation Loans Self Employed Short Term Business Loans Tax Debt Loans & Relief

Business Loan Despite Bankruptcy

Bankruptcy is a highly dreaded word in the realm of financing and getting a business loan despite bankruptcy is a bit difficult. Even though it is dreaded, many people end up in a situation in which filing for bankruptcy is the only solution they have. Nonetheless, considering that you’ve done that in the past, a looming question is can I apply for business loans regardless of that? As you might expect, the answer to this question isn’t a fixed one – there are many factors that should be considered, which we’ll outline in the present article.

Bankruptcy Can Be a Fresh Start

Irrespective of the negative connotations associated with bankruptcy, you should note that this isn’t the end of the road – or at least it shouldn’t be this way. Even though it isn’t an easy thing to do, the most challenging process follows after filing for bankruptcy. This refers to aiming at rebuilding your finances and credit.

Generally speaking, a bankruptcy statement will remain on your credit for a few years’ time. Therefore, if you apply for business loans afterward, your capability of getting financing won’t be affected in any way. On the other side, if the bankruptcy statement still is still present on your credit report, which will, inevitably, impair your creditworthiness and reliability as a borrower.

Can I Apply for a business loan despite bankruptcy?

Yes. But bear in mind that your options will be limited. Generally speaking, the longer you wait after you have filed for bankruptcy, the more likely you are to get convenient loan terms and interest rates. At the same time, there are some lenders that are more open to working with you, as opposed to traditional banks whose lending criteria are rather stringent.

Nevertheless, the downside is that the interest rates and additional fees will be significantly higher than they normally should. Therefore, before you apply for business loans, make sure that you can afford to make repayments. If you can’t, this will imminently worsen your financial situation. Evidently, applying for a loan when you’re struggling financially is a decision that requires a lot of consideration and in-depth thought.

The Differences Between Personal and Business Bankruptcy

Considering that you own a business which has established credit, you might have the option of applying for business loans. In this scenario, your firm’s credit rating will be taken into account. In other words, your personal bankruptcy file won’t affect your ability to get business loans in any way.

Your personal credit score is a major constituent for most lenders. That is to say, your credit rating and personal finances are of major significance, even though this is to your disadvantage. Hence, depending on the state of your finances, you might be unable to get financing. Or, your only option could be getting business loans with unfavourable terms and interest rates.

What Steps Can You Take?

Separate Business and Personal Finances

Before anything else, you should strive to distinguish between your personal and business finances. The thing is that, if your business is new, this might not be a possibility. But, if you’re an established business owner, you should definitely separate your personal finances from your firm’s finances. Otherwise, you are inevitably taking unnecessary risks.

Apply for Secured Business Loans

If you really need a form of financing, your only option could be using your valuable assets as collateral for new loans. By adding collateral, you are instantly minimising the lender’s risk when they borrow you the money. This could increase the likelihood of having your application approved.

Be Patient

If you need a business loan despite bankruptcy, avoid requesting a $500,000 loan immediately afterwards. On the contrary, take up smaller amounts of money instead, and focus on making the repayments – this will allow you to rebuild your credit and prove that you’re trying to get back on your feet.

Explain The Circumstances of Your Bankruptcy

Talking openly about the circumstances that led to your current financial situation can be helpful when you apply for a business loan despite bankruptcy. There are situations in which unexpected circumstances can cause unwanted complications. We’re referring to health problems, divorces, or natural disasters – these could seriously mess up your financial life without any fault of your own. Therefore, by being upfront and transparent, you can increase your chances of getting financing for your business.

At the end of the day, it is mandatory to comprehend that each lender has different criteria that ought to be taken into account. Do your research beforehand, so that you don’t end up sending numerous applications all around without any results. Australian Lending Centre can help you – make sure you visit our website to find out more about our loan offers.

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Bad Credit Loans Business Loans Short Term Business Loans Short Term Loans Tax Debt Loans & Relief

Loans from Private Lenders With Bad Credit

Just a couple of years ago, having a bad credit score was an end-of-times scenario, although now you can get loans from private lenders. It simply meant that the unfortunate owner of said credit was unable to get another loan for years or for the rest of their life. Luckily, we’re past that now. The evolution of banking and lending has enabled a new wave of borrowing.

If you’ve ever had a low credit rating, applying for a loan with a private lender was most probably the first solution to get you out of your predicament that you thought of. If you’re reading this because you’re aiming for a loan, but your credit score leaves a great deal to be desired, we’ll teach you how to get the money you need.

Private Lenders & Bad Credit Loans 

Shop Around for loans from private lenders

You should not settle for the first lender you find during your search because you will be missing out on more advantageous offers for sure. Compare a few offers and dissect them. If you can’t do this on your own, we recommend you hire a financial advisor that specialises in Loans for People with Bad Credit.

Make Your Case 

Even if private lenders give people with bad credit a chance, they’ll have to know what happened. Also, people who tend to put the blame on their banks but seem to be completely oblivious that it’s their fault will make private lenders a lot more reluctant to help them out. Unlike a bank, a lender won’t show you the door as fast as he sees your credit score. Plus, he’ll listen to your story. Perhaps you had a medical emergency and you couldn’t keep up with the monthly payments and your credit score dropped – in this case, a private lender will know that you’re not a bad payer.

Consider a P2P Platform 

P2P stands for “Peer-2-Peer”. This is basically a way of lending that pairs up people and private lenders. Let’s assume that your credit score is in a certain figure and your financial needs, too, are in a certain amount. When you go to a P2P platform (a fancier term for a P2P website, really), the professionals there will consult the lenders they collaborate with and will get back to you with the best deal, i.e. the one that’s in line with your requirements.

Opt for Secured loans from private lenders 

As risky as it is, you should be willing to take this step. The thing is, you can definitely get a loan with bad credit, but the lender won’t be very keen on giving you a low interest rate.

A secured loan is attached to assets, such as your house or car. If you fail to pay, the lender can place a lien on the asset that the loan is secured to. On the bright side, if you make your payments appropriately and things don’t go awry, you’ll get a much lower rate than you would with an unsecured loan. And what’s more, it will be in a much larger amount.

Avoid loans from private lenders that Are Too Eager to Help

Private lenders will always ask for proof that one’s income is sufficient to allow him to borrow money and live however decently for the rest of the month. If a lender doesn’t ask you for this kind of proof, an alarm should go off in your mind. Serious lenders that are actually genuine and work in accordance with the law, will never give you money unless your income allows it.

You might think “Oh boy! I’m the luckiest guy alive!” but you really aren’t. You might end up in even more debt and wreck your credit score to such an extent that it will be impossible for you to ever borrow money again.

Concluding Remarks 

Private lenders are evidently of great help to people who can’t get loans from traditional lenders like banks and credit unions. Even though it’s fairly easy to get a loan from an online lender, you shouldn’t lose your wits. Approach things with a clear mind and a thorough understanding of how loans work in general.

If you’re having trouble with finding a lender you can place your trust into, please visit Australian Lending Centre and make an inquiry concerning the type of loan you’d like to apply for. You can rest assured that you’ll get what you’re looking for plus some valuable, professional advice on how to improve your credit score.

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Business Loans Financial Fitness Financial Planning Low Doc Loans Self Employed Short Term Business Loans Tax Debt Loans & Relief

Questions for People Applying For Business Loans

Are you applying for a loan so you can start your own business? Here are five questions about business loans to help you make the right decision.

Am I a manager or an entrepreneur?

Entrepreneurs and business managers face almost the same stress when it comes to operating a business. But the two are on opposite sides of the spectrum. They’re different. What is the difference? A manager operates an already-established business. They may not be the people who started it and founded it, but they are the ones who own it at the moment. A manager also has to make sure that the challenges the business faces are handled properly. He also has to hire and retain hard-working employees, know the niche their business in focusing on, and be able to improve whatever needs improvement.

Entrepreneurs Are The Innovators

An entrepreneur, on the other hand, is the one who creates the business. He looks for opportunities that are what the market needs, and converts them into a business plan. A real entrepreneur has the eye to identify opportunities needed in the market and also has the ability to turn those opportunities into businesses.

Managers Are Effective With Day To Day Operations

If you think you can be an effective manager but you don’t have the enthusiasm to start everything from scrap, you might consider franchising. It doesn’t involve the stress of putting up a new business altogether and you have tried and tested marketing methods and business plan to help you get started. But, if you think you have the heart of an entrepreneur, go for it! Get the business loan you need to kick start your business and you will surely beat the odds and succeed in your business.

What is my business model?

This is one of the questions about business loans with high importance. Are you putting up a home-based business, an online business or a traditional brick and mortar business that requires a good location?

Create a Business Budget

Create a business budget before you fill-up the application loan. It is important to include the annual budget for the upcoming year, based on the current year’s expenses. When making a budget, don’t forget to review you’re the actual expenses versus the budgeted amounts for the past two years of operation to get a good idea of your average income and expenses.

No Guarantees on Sales Forecasts

While it is important to make a sales forecast, bear in mind that you cannot guarantee the exact sales volume. So, when coming up with a budget consider your past expenses and profits as well as your realistic sales forecast.

Business Expenses

Create a ledger are of your business expenses based on your business model. For example, list fixed expenses such as:

  • administrative expenses
  • marketing expenses
  • payroll
  • rent or mortgage
  • utilities

These amounts are fairly consistent each month regardless of your sales volume. Don’t forget to include the list of variable expenses —or those that fluctuate each month. These include raw materials, inventory and manpower.

Is Self-Employment good for me?

Self-employment is starting your own business- with your own finances, own plan, own budgeting, own everything. Now it also has its own pros and cons like everything else. Being able to own a business may sound quite great at first. But sometimes, it gets tiring when you’re the only one working. Independence is a good thing. You wouldn’t have to rely on anyone else, which minimises the possibility of small quarrels between co-owners.

Are You After Fame or Freedom?

If ever your business becomes known, you’ll be known as the person who single-handedly founded your company. This is actually a great advantage. Imagine, being the only one who founded a huge business? That’s a big deal. To other people, owning a business means being able to control whatever happens in their lives. That’s what we all want right? Freedom to do what we want, say what we want to say.

Being Independent

The search for independence has struck many – this is the reason why the majority now wants to start their own business, for them to have more control over their lives. However, drawbacks exist- such as payoffs.

Loans Give Your Freedom To Chase Goals

When you have access to business loans, regardless of your credit score, you will have the freedom to set your goals.  It is also a good motivator to track spending—knowing that when you do, you’ll be an inch closer to the accomplishment of your goals. Finally, it is a good source of emergency funds. You can cover up to 3 months of working expenses in case you hit an unexpected situation.

Finances are the biggest sources of conflict

Financial issues are one of the commons sources of business conflicts-either with business partners, with suppliers or clients. That’s why it is important to have easy access to business loans to ensure that your business will go on as usual despite financial crises. But, you have to be careful with whom you borrow money from—a good lender would want its clients to move ahead in life. They will not charge hefty interests and unreasonable fees for a small amount, Look for a reputable lender that allows you to grow your business while you can comfortably repay your loan.

It’s common to have questions about business loans. After all, it’s a big decision which does come with risk. However, business loans can also bring great reward. Australian Lending Centre can provide the financial assistance that you need to push your business forwards.

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Short Term Business Loans Self Employed Short Term Loans

What’s the Deal with Short Term Loans for Your Business?

As a business owner, you’ll often find yourself in need of financing and may be asking about short term loans for your business. Depending on your needs and circumstances, you could choose from short, intermediate or long term business loans.

In today’s post, we will discuss short term business loans, the instances in which they should be used, and the terms you have to meet to qualify for them. So, let’s get started!

Defining short term loans for your business

Loans that are classified as short term loans typically have a maturity of one year or less. In other words, they have to be repaid to the lender within that fixed timeframe. Nevertheless, there are short term loans that can be repaid much quicker than that – in approximately 120 days.

The primary reason why many business owners choose loans with short maturities is that they facilitate immediate financial help. What is more, they don’t require making a long-term financial commitment, which can be rather stressful, especially for start-ups.

The Purposes of Short Term Loans for your business

What are those instances in which short term loans are actually helpful? It’s always recommended to assess your circumstances, whenever it comes to making a financial decision. That being said, short term loans can be convenient for seasonal businesses, in particular. For example, retail firms that have to cope with inventory for the holiday season.

seasonal-business

Such a company might require a short term loan in order to purchase inventory in advance for the holidays. A business in this situation might be unable to make repayments until the end of the holidays. In such a scenario, a short term loan is an excellent option for businesses.

Nevertheless, this isn’t the only scenario in which a short term loan is a good choice. If a firm intends to increase its working capital in order to cover potential temporary deficiencies, a short term loan will meet this purpose.

On a different note, if you are waiting for credit customers to cover their bills, you might need financial support in order to pay your own bills. Additionally, such a loan could aid you to even your cash flow, especially if you own a cyclical firm.

What You Should Know About Qualifying For Short Term Business Loans

Moving on to qualifying for a short term business loan. For starters, you’ll have to collect comprehensive documentation for your application. Most of the times, the lender will require a record of your payment history that encompasses the loans you had in the past, payment records to current accounts, and, of course, your firm’s cash flow history for the last three to five years. Of course, these requirements vary. Additionally, you should be prepared to supply your income statement for the amount of time your lender requires it. Take into account that the documentation you gather should be in a professional format.

On a final note, your qualifications for short term business loans will establish whether or not the loan will be secured or unsecured.

short-long-term

Short Term Loans vs. Long-Term Loans: Which Is Better?

Typically, short term loans have higher interest rates, in comparison with long term ones. Nevertheless, in a recessionary economy, the interest rates on short term loans could be more advantageous.

In general, short term loan rates are determined by the prime interest rate and some premium. The lender will establish the premium depending on the risk your company poses to them. That is concluded after carefully analysing the documentation submitted for the application process.

Moreover, the interest rate on short term loans can be calculated in a number of ways. It’s best to be informed about the current prime interest rate so that you are knowledgeable when you negotiate the interest rate on your loan.

Securing a short term loan as a small business or start-up is a possibility. That is primarily because short term loans feature fewer risks than long-term forms of financing, due to their maturity. Nevertheless, it’s worth noting that, in the case of start-ups, most will qualify only for secured loans, which would involve offering collateral to secure the loan with the lender.

On a final note, the availability of short term loans to start-ups and small businesses is crucial to the economy. Without short term financing, companies couldn’t operate properly, nor could they expand.

If you’re looking for reliable funding for your business, you should get in touch. Australian Lending Centre supply suitable deals for our customers. Our focus is to assist Australian businesses, helping them find the ideal loan options for their needs and circumstances.

Conclusion Regard short term loans for your business

To conclude, short term loans for your business can be beneficial to both start-ups and businesses that have been operating for years. And the good part about them is that almost every business can get one. If you have other questions on the topic, you can leave them in the comment section below!

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Business Loans Short Term Business Loans

Small Business Loans for SMEs – Don’t make these mistakes with banks

Having a relationship with a bank is almost as important as any other business relationship in the life of a small business. To ensure that your relationship with your bank stays in a good place it is best to avoid the most common mistakes when dealing with banks and getting small business loans.

Small Business Loans

Sometimes SMEs focused too much on the price of loans in the form of interest instead of the conditions and covenants which can end up causing the biggest problems. Always make sure to leave yourself some headroom or spare capacity when dealing with small business loans from a bank or another lender. Do not wait too long to deal with potential problems. Let your lender know as soon as you can if you are going to be running into trouble so that they can work with you to find a solution.

Do not fail to realize that your bank or lending partner can be the most important relationship you have. It might even be more important than your biggest client or most valued employee. On the other side you should never overestimate your relationship with your lender since they probably do not look at your relationship in the same way. Make sure to read the fine print when getting small business loans because the devil is in the details. If you do not understand the fine print then request that it be made available in simpler terms so that there is no confusion.

Never overestimate your goals with your lender since they will be expecting you to meet those goals and anything short of those goals will be perceived as weakness or default. Shop around for other banks and lenders because no one should have all of their eggs in one basket. Reach out to another type of lender besides a bank and see what they have to offer. Big banks do not always have the best lending solutions for small business loans. Looking around for other small business loan options will give you alternatives so that you do not make the most basic mistakes. Having other types of lenders will give you a safety net in times when a bank will not be able to provide the funds you need. Banking relationships can be very important to SMEs so the more relationships you have the better chance you will have for success.

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Short Term Business Loans Short Term Loans

Tips on how to work at home in style – Self Employed Loans

Working from home is a growing trend and more and more Australians are choosing to have a home office or finding options to work at home. Setting up a home office is easy to do and over one million Australians have done it. The traditional office space is usually set up for efficient use of space and not for inspiring creativity but a home office can do both. Since a home office is going to be something you create from a space in your house it makes since that it would have some of the same characteristics and personality that you already have in your home. There are a few other things you can do to make sure that you love your workspace and it inspires you to get your work done.

Work at home in style

Staying away from the boring office colors and cheap furniture will make your workspace at home stand apart from what you are used to seeing in an office building. Incorporate personal objects that will make you feel comfortable and motivated. A picture of your children or a list of your favorite quotes on the wall will remind you of why you are there and drive you to do a great job while you work at home. Since you are the designer of your home office you can choose to use the space how you want and if that means having extra lighting or a stand up desk then that is what you should do.

Investing in the home office should be done with care and the items you use when you work at home should stand the test of time. Your office will be an extension of your home and having quality furniture and electronics is essential. The computer you use will be all yours so you can go as high end as you need without having to ask the boss. Taking a short term loan might allow you to get the things you need when you need them and you can look at it as an investment into your career as well as your home.

Being self-employed is a freedom that everyone should know at some point. It takes motivation and you should surround yourself with things that motivate you to get the work done the very best you can when you work at home. Decorating or supplying your office with quality materials is crucial to having a great working environment. The lenders at Australian Lending Centre are approving self-employed loans to help Australians achieve their life and business goals no matter what they are dreaming of.

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Short Term Business Loans

Funding your Business can be Taxing!

Sooner or later all businesses need a short term business loan, whether it’s to get the operating capital for starting up a business, to finance a business expansion or even to pay pending bills such as wages or tax bills.

Regardless of where you go to apply for a short term business loan, the lender will have a set of expectations to qualify you for a loan. You can greatly increase your chances of successfully securing a short term business loan by being prepared to meet those expectations and choosing your lender wisely.

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Business Loans Short Term Business Loans

Banks Competing for Business Loans

Many of the large banks in Australia are launching new campaigns to encourage their business customers to seek new business loans. Advertising has heated up in the rivalry among the banks with the constant addition of new advertisement in every medium. This has made business loans a very competitive field, making the choice of who to go with very difficult.

To intensify the rivalry, the banks have started adding incentives for a business to bring their loans with promises of up to $20,000 for some. Smaller banks who are struggling to compete with these large promises are trying anything to keep their current customers which include adding fees to businesses trying to leave.

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Business Loans Short Term Business Loans

Thinking of Starting a Business?

25 June 2010

Thinking of starting a small business? Once you have decided to start your own business, there are many steps required to get your concept up and running.

Before you even set the wheels in motion you should find out if people are interested in buying your products or services. Find out who your competitors are and whether the market can sustain your business.

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Business Loans Short Term Business Loans Short Term Loans

Struggling Small Business Can Survive

Struggling small businesses in Australia are continually finding themselves in a questionable position with the current financial standings for Australia. Their optimism and outlook for the current year are looking bleak due to interest rates creeping up and a strong exchange rate. Additionally, the floods and cyclones have created a point of no return for many businesses around Australia.

Struggling Small Business Statistics

In a recent report among some small and medium enterprises, researchers found that optimism had dropped 41% to just 38% from the previous year. This decline in confidence has caused many small businesses to act cautiously and begin reevaluating the year ahead.

Increase in the Exchange Rate Can Help Struggling Small Business

As there has been an increase in the exchange rate for the Australian Dollar, a majority of the exporters are finding large losses in their financial statements, due to international importers finding their goods elsewhere or reducing the quantity they require from Australia to get more bang for their buck. With the forecast on the American Dollar staying low – there seems to be no hope in sight for Australian exporters. In response to these findings, Australian businesses are exploring new markets to enter or new products to provide to the Australian market.

A Struggling Small Business Might Look Into Short Term Loans

A great option to consider for recovering from the economic and environmental issues is a short term business loan. At Australian Lending Centre, we provide short term business loans which can provide the necessary funding to get small businesses through this rough period. Typically, our loan terms cover a period of as little as a couple of weeks, up to a year and we also have options available where you’re not required to make any repayments until the end of the loan term.

Short term business loans are ideal for:

  • Improving cash flow (working capital)
  • Purchasing business supplies, vehicles or office equipment
  • Paying wages
  • Paying off business debts
  • Starting up a neaw business or expanding an existing area of your current business
  • Paying your tax debts – e.g. business GST, staff PAYG obligations or superannuation payments
  • Taking business trips

A short term business loan can support struggling small business providing many benefits apart from the repayment flexibility such as a quick approval and funding turn around. If your business is finding itself in a tight spot, contact Australian Lending Centre and speak with a business loan consultant today on 1300 138 188. Alternatively, fill out the enquiry form to the right and a short term business loan consultant will contact you shortly.