If you’ve been thinking about a new business venture in 2023 but have been worried about funding, there is always help to get you off the ground. A small business loan can provide the funding you need to buy new equipment, handle unseen expenses and train new staff (among other benefits!).
With this in mind, here are three top reasons you might want to enlist the best commercial finance brokers Melbourne has available and take out a small business loan in 2023:
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1. You are looking to expand your operations
If you own and operate a brick-and-mortar storefront, expanding to a new site could help you scale up your operation and produce more revenue. If this is the case, you might require a small business loan or real estate business loan to help rent, buy or build the new location.
Banks generally see real estate loan applications in a better light when the business is already making a profit, has positive forecasting and has an increasing cash flow.
Long-term business loans will use your business assets as collateral to ensure you can repay your debts. These loans typically require quarterly or monthly repayments from cash flow or business income, with the loan term running from as little as a few years to multiple decades depending on the interest rates.
2. You may be looking to buy new equipment or technology
You generally have two options when it comes to buying new hardware: leasing or buying it outright. Renting the equipment may be the best option depending on the nature of your business, but it could also be a good idea to buy the equipment off the bat.
If your operation requires specific equipment, small business loans can be the best option for replacing it or if you need brand new equipment to fit your business expansion. Hardware you buy for your operation can be resold when you no longer need it, with a cost-benefit evaluation being necessary to understand whether it’s better to rent or buy the equipment outright, whilst taking into account other important considerations like storage space and frequency of use.
3. You need to purchase new stock
If you operate a product-centric company, your inventory is a vital expense. However, there could be occasions when you find stock at a discounted price or want to buy more to be stocked up for busy periods like the festive season. Regardless, a business loan can help you keep your products in stock and ready to roll out the door.
This is the best time to take out a short term loan, and they can generally be repaid within the year. To be approved for such a loan, you may still want to enlist the best commercial finance brokers Melbourne has available, as they have solid working connections with the bank and can help you secure the funding you need to keep your store well-stocked.
Maintaining a positive balance in your account and paying your debts on time are two of the best ways to get into the bank’s good books, remembering that small business loans to purchase stock are usually designed to be short-term and repaid as such. Therefore, it’s important to consider a strategy that will help you repay the loan as fast as possible, and this may include paying it back with the money made selling the products bought with the loan!
Regardless of the nature of your loan, it’s always best to have a reputable team of brokers in your corner to help you secure it, so get in contact with your trusted financing team today to secure the funds you need for that all-important expansion!