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 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.
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.
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
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.
Running a small business can be a lot of hard work. That’s why we’ve pulled together some tools, insights and banking solutions for you to help your business succeed. We understand how confusing banking can sometimes be, but there are some significant benefits to shopping around. People tend to stay with the same bank due to familiarity and the sheer enormity of changing and what that might entail. This means that when our bank adds little extra fees and charges we put up with it. But how much do those extra costs really affect us?
Lets have a look at the pros and cons of changing banks....