The features and benefits of business loans in Adelaide
With the help of a business loan, you can potentially borrow as much as $500,000 or as little as $5,000 depending on your business’ needs and financial situation.
The beauty of comparing so many loans with one another is that you can make a more educated decision on which has the best interest rate and thus can save you the most money.
We work with lenders who won’t charge you if you’re looking to take advantage of an increase in business revenue and complete your loan repayments early.
As long as it’s used for business purposes, your loan funds can be distributed across your business in any way you like, from boosting your cashflow to fitting out your business.
Types of business loan
The most common type of business finance, unsecured loans enable businesses to access the funds they need without attaching an asset to the loan as security. Some lenders may allow you to borrow up to $500,000 and, because there's no collateral, offer same-day approval.
If your business already owns valuable assets, such as property or expensive equipment, you may choose a secured business loan instead. These loans may increase your borrowing power beyond what an unsecured loan can offer and, crucially, typically come with lower interest rates.
Business loans don't always have to be worth hundreds of thousands. If you're operating a small business and need a boost to help you keep on top of your expenses or expand your company, you may be able to take out a loan starting from as little as $5,000 and unlock further capital.
Just because you don't have all the required documents for a standard business loan doesn't mean you're out of options. Low doc finance enables you to use alternative documentation, such as other business financials, in the application process to access the funds you need.
A commercial line of credit allows you to draw from your loan account whenever your business needs access to their funds, instead of managing a lump sum and repaying it like a regular loan. This can add flexibility to your finance arrangement, providing money when you need it.
Invoice finance presents another option to business operators looking to free up cash through outstanding invoices yet to be paid by their customers. Your invoice finance can either be invoice discounting or factoring, which present different options when it comes to your invoices.
A common reason for seeking out a loan is to purchase commercial equipment. You can do this either with an unsecured arrangement or one with the equipment itself as collateral, with the latter potentially increasing your borrowing power and lowering your interest rate.
With this finance, when your business purchases product, your supplier provides an invoice which you send to your financier and pledge to repay by a set date. From there, your supplier sells the invoice to your financier at a discounted rate, while you repay the full amount to your financier.
Under an inventory finance agreement, your lender pays your supplier directly for inventory, which allows it to be signed off and sent to you. From there, you can pay off your debt within a pre-determined period to your lender, which may be longer than the regular debtor period.
An overdraft facility is attached to an existing financial account belonging to your business, such as a transaction or savings account, and enables you to borrow up to a set limit after the account’s balance reaches zero. These overdrafts are repaid with interest, but only on what you use.
You may simply be in a position where your business needs a boost to its cash flow. If this is the case, there’s a range of stop-gap solutions which may be suitable for your situation, from standard unsecured loans to specialist cash flow loans, invoice finance or even an overdraft.
Why compare business loans through Savvy?
Top tips for maximising your business loan approval chances
Your business’ credit score is one of the first areas your lender looks at when processing your application. By showing you have a strong history of servicing debt, whether that be through paying regular bills such as utilities or other loans in the past, you’re more likely to be approved for financing.
Of course, you can only take on payments your business can afford to manage. The greater your monthly and annual turnover, the more you’re eligible to borrow. Additionally, by showing the revenue your business generates is comfortable and consistent, lenders will be more confident in your ability to repay your loan.
Displaying a long history of trading with your current business registers crucial runs on the board when it comes to your lender’s assessment. Newer businesses are, in most cases, considered riskier when it comes to lending, so established businesses are usually favoured by lenders.
It can be useful to write up a plan for yourself before you apply to work out exactly what you need to borrow and how the funds will be distributed. This saves you from applying for more than you need, which can sink applications if lenders aren’t certain of your ability to service the loan comfortably.
How to apply for your Adelaide business loan
Frequently asked questions about business loans in Adelaide
Helpful business loan guides
Still looking for the right finance for your business?
Explore a range of business loan options suitable to your financing needs and apply online through Savvy today.