Business Finance Solutions to Improve Your Cashflow & Grow Your Business
No matter how long your business has been trading for or whether you are a small or large business finding the right type of finance to manage your cashflow and grow your business is crucial to your success.
The right business finance solution can assist you to build and grow a highly profitable business, but the wrong type of finance can have the opposite effect.
We understand that not every business is eligible for a secured Business Loan from a Bank, however there are many other types of alternative business finance products that can be utilised to provide funding for your business.
Our Business Finance Specialists will work with you to understand every aspect of your business and uncover your finance needs so that we can provide the right finance solution to support your business objectives.
Unsecured Business Loans
An Unsecured Business Loan is a loan that does not need to be secured by Assets such as real estate property, vehicles or inventory. They are usually assessed by the profitability and cashflow of your business. They are usually a short term funding solution with loan terms from 6-36 months and as they are unsecured they are considered a higher risk by the lender so their interest rate is much higher than a traditional secured business loan.
Unsecured Business Loans are a good option for Businesses who have been trading for 6 months or more with bank statements that demonstrate a strong cashflow and profit.
Secured Business Loans
Secured Business Loans enable business owners to borrow funds for their business using their property as security for the loan. The amount you are able to borrow will depend on the amount of equity you have in your property.
These types of Business loans usually have a strict eligibility criteria and are usually full documentation. Secured Business loans take longer to approve than many of the other types of business lending but because they are secured their rate is lower and the loan term is longer than an unsecured business loan.
These types of loans are usually offered by the Big Banks but there are some non-conforming lenders who also offer secured business loans.
Invoice Finance is a type of Working Capital Finance that provides a business owner with a line of credit facility secured against their unpaid invoices. This means that no real estate security is required. Facility limits range form 10K-150M to support businesses of any size.
In order to be eligible for this type of finance you must be a Business that invoices other businesses. You cannot be a business that invoices consumers.
Invoice finance can help businesses that have slow paying debtors to plug the cashflow gap gaining access to funds when they need them for operational costs and growth opportunities.
Trade Finance provides a revolving line of credit facility for business owners to pay domestic and international suppliers bridging the cashflow gap between purchasing stock and receiving payment from their customers.
A Trade Finance facility can also be used by a business to fund the purchase of equipment and machinery from overseas suppliers. Once the goods arrive in Australia they can be refinanced under an Asset Finance facility.
Trade Finance is often used by import and export businesses as the process involved assists to simplify the flow of business transactions and minimise the risks involved in buying and selling internationally.
For further information about the benefits of Trade Finance Click Here.
Overdrafts / Lines of Credit
Overdrafts or lines of credit provide a revolving line of credit that once approved can be used as needed as long as the balance is kept within the facility limit every month. They can be secured or unsecured depending on the chosen lender, facility limit and the business borrowers’ circumstances.
Unlike a business loan that requires a fixed repayment every week, fortnight or month, there is no minimum repayment that needs to be paid monthly for an overdraft facility, interest is only charged on the amount of funds that have been drawn down.
Frequently Asked Questions
Why Do I Need Business Finance?
Business Finance can assist you to maximise your cashflow and provide opportunities for your business to grow, but the type of finance is dependent on many variables.
At World Class Finance we can find the right business finance solution to help you improve your cashflow, purchase equipment, buy stock, import and export goods, pay wages and expand your business.
Give us a call today to speak to one of our friendly Finance Specialists.
What Types Of Business Finance Can I Get?
There are many types of Business Finance offered by the many Commercial Lenders so the type of Finance that will be best for your business is based on your business circumstances.
Speak to one of our friendly Commercial Finance Specialists who can work with you to understand your business and determine the most suitable Finance solution.
Depending on your business needs and circumstances, World Class Finance can arrange:
- Secured Business Loans
- Unsecured Business Loans
- Franchise Loans
- Invoice Finance
- Working Capital Loans
- Cashflow Funding
- Trade Facilities
- Import/Export Finance
- Work Vehicle and Equipment Finance
- Overdraft Facilities
- Lines of Credit
- Trail Book Finance
Which Bank Is Best For A Business Loan?
There are many different options for Business Finance with Banks and other lenders. The Bank or Lender as well as the type of finance will depend on your business and circumstances.
The Big Banks have stricter lending criteria and a much longer approval process than some of the other Business Finance lenders. The type of funding you get will not only depend on the lender’s eligibility criteria but also how fast you require the funds.
At World Class Finance our Commercial Finance Brokers have built relationships with over 70 commercial lenders and understand their policies and products. We can help you find the most suitable funding for your business.
What Is Invoice Finance?
Invoice Finance, also known as debtor finance or receivables funding, is a type of business funding that provides access to funds tied up in unpaid invoices.
This type of Finance can help your business to ensure consistent cash flow allowing you to run and grow your business even if your debtors are slow to pay their invoices. It can be a good alternative to using your own personal property as security to gain funding for your business.
Please note it is important to realise this kind of funding may not be suitable to every business and it is important to seek advice from your Finance Broker to ensure that this is the best solution for your business from the many types of business funding.
Contact us today to discuss what Business Finance Solution would be best for you.
What Is Trade Finance?
Also known as a Trade Facility, Trade Finance is a type of Working Capital Finance that is used by a business as a cashflow management strategy to fund the purchase of their stock that they will later sell to their customers.
Trade finance is often used by import/export businesses as the process involved assists to simplify the flow of business transactions and minimise the risks involved in buying and selling internationally.
Call us today to discuss whether a Trade Finance Facility is the right solution for your business.