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Why get a small business loan?

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Purchase or develop a bigger premises

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Buy new equipment

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Hire more staff or buy more stock

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Smooth out your cash flow 


Get started with the basics 

At some point, most small businesses start thinking about business growth and with that usually comes the need to look into getting a business loan or some form of finance. To understand the basics, take a look at our simple guide to business loans and finance. The article will help you get across: 

  • Different types of business financing to align your business needs 
  • Commonly used security for business loans such as residential and commercial property 
  • What lenders look for when considering a loan application. 

Understand the differences

Business loans are one of the ways to help your business grow but there are times when other options such as credit cards or overdrafts might suit your business needs better. Key considerations could be: 

  • Whether you need to borrow a one-off lump sum 
  • If you’re smoothing out your cash flow and need funding which you could pay off within 55 days 
  • Reoccurring expenses that put strain on your cash flow seasonally. 

Knowing the difference between a business loan, credit card and overdraft can be vital to growing your business with the most cost effective options.


How we help small to medium businesses

Loans and cash flow solutions for small and medium businesses

  • Business loan: Borrow from $5k to help take the next step in your business plan.  
  • Business overdraft: Support your cash flow with access to extra funds through your transaction account.  
  • Insurance premium finance: Short-term finance that lets you spread a lump sum annual premium with monthly instalments.  

What financing options are available for startups?

Business credit cards: Cover everyday business expenses and short-term costs with a credit card. 

Business vehicle and equipment finance: Borrow money to buy, lease or hire a vehicle or equipment for your new business. 

Bank guarantee: Provide your suppliers and vendors with certainty of payment. 


What does a small business need to get a loan?

To get a business loan you must be:

  • A business entity domiciled in Australia; or
  • An individual 18 years and above or strata corporation domiciled in Australia; and 
  • You need the funding for business or investment purposes other than investment in residential property.

Generally, you’ll need to have: 

  • Minimum 2 years’ experience in the same or similar business
  • All statutory payments (i.e. payroll and tax) are up to date 
  • Clear credit report, including credit history of directors 
  • A good financial history with no frequent overdue payments.

You’ll also be asked for some documents so we can do an initial assessment, including: 

  • Business and individual financial statements and tax returns
  • Proof of individual income.

Is it hard to get approved for a small business loan?

While getting approved for a business loan can be a little more complex than a personal or home loan, it might not be as hard as you think. There are several factors that affect your business loan approval. Keeping these factors in mind might help put you in a better position to get approved.

 

Your business trading history and experience help give lenders confidence in the sustainability of your business performance. 


Things you should know

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.