Tag: small business loans

Categories
Business Loans Short Term Business Loans

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

business loans

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.

Categories
Business Loans Short Term Business Loans

Thinking of Starting a Business?

business loans

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.

Continue reading “Thinking of Starting a Business?”
Categories
Business Loans Short Term Business Loans Short Term Loans

Struggling Small Business Can Survive

struggling small business owners
struggling small business owners

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.