Whether you’re thinking of following your dream to start up your own business or are already running your own, the thought of taking out a business loan to keep the momentum going may have crossed your mind.
And although the idea of approaching a lender for a loan may seem a little far fetched, it’s actually a lot more common than you’d think.
According to the 2019 Australian Banking Association Economic Report, 34% of businesses with 200 or more employees sought out business finance in the 2017-18 financial year.
“While there are several financing options available, short term business loans from alternative lenders have become an increasingly popular option. For businesses that cannot wait for the turnaround times of traditional banks, it’s a great solution to get a quick cash injection without needing to go through the tedious application process,” said Yanir Yakutiel, CEO & Founder of Lumi.
The report also revealed that 40% of small businesses took out financing to maintain short-term cash flow, 32% used finance to guarantee a businesses’ survival and 22% sought out a loan to replace equipment or machinery.
“Being concerned about whether you have enough cashflow can really hamper your business opportunity readiness, and sometimes you need to act fast to capitalise. Short term loans can give businesses the flexibility they need to make timely decisions and take advantage of those growth opportunities as they come up,” said Yakutiel.
So no matter what stage you’re at with your business, we’ve gone ahead and pulled out four hot business loan deals we think could tickle your fancy.