Sometimes when you are in business for yourself, you have plans and you want to grow your business. This same need to expand will quite often require you to take on some kind of debt. Contrary to belief, debt can be good and having the opportunity to show that you can pay back your debt and pay it back on time will increase your businesses credit score and overall credit outlook. You might need to hire more staff, buy new equipment or buy additional stock and you don’t need to jeapordise your personal property to act as collateral when you take out certain kinds of loans.
Different Kinds of Loans
There are two kinds of loans to look at here. One is a secured loan where you need to provide collateral such as your property to back up the loan. The other is an unsecured loan where you are not required to put up your own personal property as a backup. These loans do come with a higher rate of interest as the risk for the lender is a little higher and you can also apply for bad credit business loans as well, that also require some additional requisites and incur higher interest rate charges.
Protect Yourself and Your Family
It is important to know that if you do make an application for an unsecured business loan, that your family home is never at risk and that going through the motions of getting the loan is pretty straightforward. The unsecured loan is designed to be relatively easy to get and if you have been running your business for 6 months or more, they will definitely consider your application. They do require a minimum annual turnover at around 500,000 dollars and that your business is Australian owned and also registered as such. You need to use the approved funds for business purposes only.
Great Speed and Fast Decisions
Due to the speed of the internet now, new applications can be put through the system and go through the various hurdles at great speed which means that you get a quicker decision. There is no need to make an appointment and most applications can be done from the comfort of your office chair or your armchair at home. Lenders can now make a decision on your loan application in minutes and there is no unnecessary paperwork to fill in. It is all done digitally now which allows you to pick the time you want to make an application and you can do it at any time, 7 days a week and 365 days of the year for your business needs.
Everything will be upfront and there will be no ambiguity. The terms of your loan will be laid out for you, telling you exactly how much you will pay back, how often and when. The interest rate is set for you and you are told exactly how much you are paying in order to get the loan. It is all very upfront, honest and fair and it makes getting a loan so much easier than before.