Traditionally banks have been wary of lending to small business and the capacity to borrow is becoming more difficult. Because of this, banks have spent most of their focus on bigger fish, leaving entrepreneurs and startups to generally fend for themselves. However, Australia is built on small businesses, so it is in all of our best interest to make sure that these businesses get the help they need to become successful.
The news is littered with articles about the powerful banks taking advantage of the small business man. Because of some of these stories many people feel that they are powerless against the banks and their bank holds all the cards. However, the latest Scottish Pacific SME Growth Index highlights some opportunities for SMEs to take greater control over the banking and show that they actually have more control than they thought.
The most common facility that SME’s turn to for finance is banks. Unfortunately many small businesses get turned down by the banks for loans. There are a number of reasons for this, here are the main ones and how to avoid them.
How to choose the right bank for your small business?
When you are first starting out in business you don’t know what you don’t know. There are so many decisions to make, and banking probably doesn’t seem like a big decision. You will probably go with who you have your personal banking with. But your banking choices can lay the financial foundations for your future financing opportunities. You should at the very least be looking for a bank that is supportive and reliable.
Small businesses are the lifeblood of this country. Making up 99% of businesses and employing over 50% of the workforce yet they seem to mystify the banks. Despite their strong hold on the Australian economy most banks struggle to generate strong returns and therefore don’t always have a great relationship with them.
There are many options for getting the funding to launch or expand a business, and the criteria for each lender will vary. However, there are some fundamental elements that all banks and lenders will look for when assessing your loan application. Here are 7 basic loan requirements and how you can prepare your business meet those requirements.
Ever wondered what a bank wants from a customer? Banks may seem unreasonable at times, but the truth is, what they want is actually pretty simple! Here is our guide to be being the perfect bank customer.
Running and growing a business presents the owners and managers with numerous challenges on a daily basis. Some of these challenges are completely out of the hands of the business, unforeseen and uncontrollable. So when there are challenges that can be minimised and even turned around to be a business asset these are the areas that must be identified and capitalised on. This can make life easier, stresses less and remove road blocks from growing and expanding your business. #bankingnews
Business loans are unlike other private loans such as a mortgage or personal loan. They include a covenant which are terms set out by the lender. They are benchmarks or certain actions that the business must take on a regular basis to demonstrate that the business is profitable and give the bank confidence in their ability to continue to make repayments. #news
Once upon a time the only finance options were banks. Today, that isn’t the case, and there are a number of new financial technologies that are gaining traction in Australia. So are these new options better than traditional banking? In this article we explore the different options and help you unpack what the best choice is for you and your needs.
When a lender approves your business loan it will usually be on the condition that certain covenants are agreed to. These are terms set out by the lender that are usually in the form of benchmarks that the business needs to achieve to show that they are profitable and to ensure that you can continue to make the repayments.
For SME owners this would be no surprise, but recent research identified cashflow and time management as the biggest pain points for SME’s. The research conducted by East & Partners on behalf of ASX listed working capital lender Scottish Pacific is part of their bi-annual SME Growth Index. They sought the views of 1,200 SMEs with turnovers ranging from $1 million to $20 million.