Getting a business loan is essential for any type of business, and it is even more important once your business is already operational. Choosing traditional ways of business financing like getting a loan on banks can often be difficult to access especially for small businesses in Australia.
However, there are several options for business funding that you can choose from and these will include the following:
- Invoice Financing
Another popular option for maintaining cash flow is invoice financing and it’s commonly used by small businesses in Australia who are waiting for debtors to pay their invoices.
There are two major classification of invoice financing:
Invoice factoring: this is commonly done by small business owners where they sell their invoices to third party at a reduced cost, but the main purpose of this is to get instant payment.
Invoice finance: this option is used as security for obtaining a business loan.
If you’re looking for invoice finance services, like the one Bizzloans offer, which they call InvoiceNow, then you can readily contact them through their website.
The Bizzloan’s InvoiceNow offer 100% of the invoice value with the exchange for a small drawdown fee and weekly interest rate. Basically, invoice financing is popular for small business providers, tradies and agencies, who often face cash flow issues after they purchased certain materials for their projects or they have completed their recent project but haven’t been paid yet by their client.
- Online Lenders
Australian business owners are now more interested on online lenders because they can easily get the funding they need for their business. Whether they need the funds to boost their cash flow or expand their businesses, it’s always a great idea to check out several online lenders and compare their rates before choosing the one that is right for you.
Most online lenders like Bizzloans Australia offer unsecured small business loans and usually you can take out as high as $250,000 but you need to be qualified first before you are allowed to get a loan with that amount. In fact, it only takes minutes for your loan to get approved and the money transferred into your bank account usually within 24 hours as long as you complete the online application process.
Usually, the most significant benefit of these types of loans is the fact that there is no security required to get them, which means you don’t need to put your home as collateral.
However, when you need larger amounts, online lenders will typically require more and that will slightly be more paper work involved, and potentially some form of security like other assets of your business, but it is still the best option compared to a more traditional business loan.
This is the reason why online lenders are Australia’s favorite forms of small business funding, because it only takes 24 hours to get the funds you need for your small business.
- Angel Investor and Venture Capitalist
If your business needs some major funding as well as some advice in managing growth and expansion for your business, then you should be looking for an angel investor or venture capitalist since it is the best option for you.
However, you should understand that if you have an angel investor in your business then you should relinquish some degree of control over the operation of your business, because a venture capitalist and angel investor will have a say on how you will handle your business.
Although they will also provide you the funds that will help you take your business to the next level. Most of the time they will invest millions of dollars to your business, but they will be more concern about their ROI.
Crowdfunding is another option for new businesses that have a new and revolutionary product to present to the market. If you have an interesting product and you need the funding for it then you can check out websites like Kickstarter and GoFundMe.
These sites can bridge you to a group of individuals that are willing to help you fund your projects. But they expect some rewards in return like free product, percentage of your revenue or the opportunity to help you in the design process.
As of now, there are 600 crowdfunding sites globally and some of these sites will allow you to offer equity and shares in exchange for the funding that you need. So, it will be much easier for you to attract potential investor.
Again, you should understand that you’ll be losing some form of control over your business in the process. This is the common drawback of this funding option like the one with angel investor and venture capitalist.
Obtaining funds for your business is now much easier than before through the internet since there are several options that you can choose from. However, if you need an unsecured small business loan in Australia to help you manage your cash flow or to bring your business to the next level, then you can contact Bizzloans Australia