$100,000 Business Loans

With an eye to your business’ available cashflow, it’s important to map out each of the areas in which you need financial assistance from a loan before commencing your application. This means you should carefully consider the aspects of your business which require further investment from a finance deal and determine how much money should be distributed throughout these areas. Doing this will help you enter the application with a clear mind and minimise the risk of borrowing more than you need and ultimately costing your business more overall.

Yes – business loans can be used to purchase a pre-existing business or franchise. There are several key benefits to buying a business, such as an existing cashflow, staff already working with set internal processes and the intangible value of its brand already being somewhat established. However, you may find that because it’s already established, it’ll cost more to purchase, so $100,000 may not be enough in many cases. Additionally, lenders will require further documentation, with financials for both your current and new business from the last two years and details on your assets, liabilities and any transferrable skills. For instance, caravan park finance is more likely to be approved if you have a history of working in caravan parks.

Not always – many of our lending partners won’t penalise borrowers for submitting instalments above the minimum required amount. It’s highly recommended that you look for a loan deal which offers free additional payments, as having this added flexibility can help you save a significant amount of money throughout your loan and allow you to get it off your books sooner if your business suddenly enjoys a burst of available funds.

Not all businesses – while lenders will typically be more than happy to grant funds for your business, particularly if you’re a medical professional or working in an industry with high earning potential. However, some lenders will have a list of industries for which they won’t provide funding, such as foreign currency exchange, not-for-profit, stockbroker and pawnbroker businesses. Check with your lender before you apply to find out whether your business is on their excluded industry list.

Most lenders will implement a minimum of six months’ worth of trading before they’ll consider your application, but others may raise this to 12 months. However, there are some lenders who may consider startup businesses trading for fewer than six months in certain circumstances, such as if they’re owned by an experienced business operator.

You can – deposits aren’t a necessary part of business loans, with 100% financing and beyond available for whatever you need (provided it’s business-related). However, you may find there are benefits to doing so which makes paying a lump sum of your own money towards your expenses a sensible decision. Taking out a deposit of less than 100% of the funds you need and supplementing it with your business’ cash can reduce the payable interest on your loan considerably, as well as make it easier for you to pay it off sooner.