Business Loan

Is An Unsecured Business Loan A Good Option?

For any business, the most important element is arguably capital. You need money on hand to carry on with day-to-day operations as well as continue to see it grow.

If you’re short of capital, it is possible to reduce your costs, however, with it often comes a lack of growth.

The other option is to look at ways you can inject more capital into the business. For most business owners the most effective way to do that is with a business loan.

For SMEs, one of the most popular options is an unsecured business loan, which is generally between $5,000 and $300,000 and would be repaid within a year. They also give you a degree of flexibility as there are no restrictions on how you can use the cash injection.

There are other reasons why it might be worth looking at an unsecured business loan.

Is An Unsecured Business Loan A Good Option?

Availability

One of the best things about an unsecured business loan is that they are readily available.

In recent years, more and more lenders and online platforms have popped up, making them available to a wide array of small and medium businesses. However, it’s always worth talking to a finance broker as they will have the best understanding of what your options might look like and have experience in this area.

 

No Collateral

When you take out a secured loan, you are using an asset as collateral. If you’re in a position where you’re unable to pay back the loan, the lender is able to claim the asset that you put up for collateral.

If you don’t have the assets to put up as collateral, then an unsecured business loan might be a more effective option. However, it is important to note that the lack of collateral will likely lead to higher interest rates, and risk to your business.

 

Fixed Terms

Typically, an unsecured business loan has very clearly defined terms which make repayments relatively easy to manage.

Make sure you know the terms of the loan before accepting and go over them in detail with your finance broker.

By |February 5, 2022|Categories: Business Loan|Tags: , |0 Comments

Confidence Coming Back into Retail

After a tough two years, investor confidence in brick-and-mortar retail, appears to be returning.

Confidence Coming Back into Retail

According to CBRE, Q3 retail transactions have jumped 91% compared to the same period last year.

 

CBRE believes the ongoing lockdowns in Sydney and Melbourne highlighted that many retailers are prepared to adapt to the current environment and embrace practices such as ‘click and collect’ and e-commerce. They believe investors are now clearly starting to embrace Australian retail assets, based on how they’ve held up during the tough times.

By |January 18, 2022|Categories: Business Loan|0 Comments

A Business Loan or Line of Credit?

Business loans and lines of credit are two common ways businesses can borrow the money they need to keep their businesses moving forward.

A Business Loan or Line of Credit

Line of Credit – typically, a line of credit will be more flexible than a business loan. You have access to the funds you need up to a certain figure. You can draw down the funds as required and pay interest only on what you’ve used. You can also pay the funds back in a more flexible manner.

 

Business Loan – a business loan is more fixed in the amount of money you have access to and the way you pay it back. Like most loans, you are required to make ongoing repayments. You also have an end date, meaning all the funds need to be paid back by that set date.

By |January 18, 2022|Categories: Business Loan|Tags: |0 Comments
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