Just about every business has a different outlook about loans and financing. While a loan could be considered a risk for just about any business, sometimes you have no choice but to take the risk. If businesses use loans for the right reasons and at the right time, it can actually help to take your business to a whole new level, making the risk worthwhile.
Top Reasons for Business Loan
Taking this into account, let’s take a look at some of the most common reasons for business loans:
Acquiring More Space or developing a Secondary Site
Your current business might have outgrown its original office, shop or site. Your current location could be working well, but it might be time you moved to a new place. This isn’t necessarily a bad problem to have, but it can cost money. This is where a fast business loan can help out.
Boosting Your Credit Record
If you are applying for finance for the first time, and you maintain a good credit record by paying on time and keeping your account up to date, this boosts your chances of acquiring further finance in the future. You never know when you might need funds in the future!
Acquiring New Inventory or Specialist Equipment
Almost every business will require new equipment or an equipment upgrade at some point in time. Whether you are a services business or a manufacturer, its a fact of life that your equipment will need upgrading due to wear and tear, or even advances in technology. Furthermore, you may need to expand your inventory to keep up with new trends or demand. This is where business loans are critical to your business.
Taking advantage of new opportunities
So often in business, a new opportunity will present itself. This may come as a result of identifying a gap in the market, or you may form a new business relationship that requires you to act fast. When opportunity knocks, a fast business loan can open the door.
Hire Better or New Staff
Many business owners know that your workforce is your greatest asset. And it is not easy to retain or find good employees. You should not lose your greatest asset simply because you are not in a position to keep them. You could be letting a considerable investment walk out of the door. This is where a business loan can also help.
Sometimes, it is not low profit margins that stifle your business operations. It can be something as simple as lack of cash flow that can cause a small business to collapse. If insufficient cash flow is hampering your business operations, then a fast business loan could be the best way to cover this shortfall.
Where Should You Apply For Small Business Loans?
Until recently, the conventional sources of business loans were the big banks. Unfortunately, banks have proven to be slow, complicated to deal with, and bureaucratic, particularly for the small business. From a recent survey, it was found that it could take close to three weeks for a bank to approve your loan application, with more than 80% of the applications being rejected. Now there are many non-bank lenders that allow you to apply online and can approve your loan application in less than 24 hours. The application process is quick and easy.
ALSO READ: How To Apply And Qualify For A Business Loan
New Lending Products Are Making It Easier
Most small businesses find it very difficult when it comes to acquiring working capital. As a result of this, various lending solutions have exploded in the marketplace. These lenders and their products provide you with a simple, no fuss online application procedure. They quickly assess all your business data and can even approve your application and have the money in your account within 24 hours. This provides you with immediate access to the funds that may mean the difference between the survival or extinction of your business.
There are numerous online lending options you can consider. However, you need to be cautious as the wrong financing could cost you dearly. If the loan exceeds your needs or repayments are structured poorly, it could be catastrophic for your business. The following needs to also be considered:
1. The importance of interest rates
Pricing and costs are an essential aspect that you need to take into account your loan. Always be on the lookout for lenders who do not mention their rates or give pricing that is difficult to understand. Go for a simple, straightforward agreement that indicates the interest rate and other fees and charges.
2. A speedy platform that’s ideal for your business
When applying for a fast business loan, go for a platform that will automatically review all your business data and provide you with a real-time decision. While traditional lenders will use online forms to get your details, the information will still undergo a manual process. You might need to wait for weeks to get feedback. You need to look for an online lender who utilizes smart technology to quickly arrive at a decision so you don’t have to worry about long approval times. Look for lenders who can approve your loan application online.
LoanOne is one such online lender. LoanOne is one of the fastest growing financial companies in Australia. We offer both personal and business loans with competitive rates for different industries. Our loans are fast, flexible and can be tailored to both your personal or business needs. Click here to apply now!