Upgrading your business? A business loan is worth a look

Aeronautical engineer is thinking of taking out a business loan to grow the business

Business owners seem eager to reach their financial goals as the number of new loans taken out are rising, recent data from the Australian Bureau of Statistics (ABS) shows. 

In fact, for business construction purposes, the total loan amount of Australian businesses rose by 17.8% in August.

Similarly, there was an average jump in loan amount for businesses that have purchased property, up by 10.8%. 

This uptick may be because business loans are used for all sorts of things, and can help keep the engine running on your enterprise if you’re in a bit of a financial bind. 

Business loans are becoming more popular

Few colleagues are discussing the rising popularity of business loans

According to the Reserve Bank of Australia (RBA), there’s a growing number of outstanding loans this year. 

One reason may be that many businesses are looking to modernise to keep up with the ever-evolving landscape of technology and customer demands. In doing so, some might be thinking about springing for sustainable tech, or to even make physical room for new machines or technology.

As these upgrades will possibly stretch the financial budget for some companies, a business loan could be something to consider.

Thinking of getting a business loan?

Colleagues are gathered around a table and having a meeting about business loans

You may be wondering whether you’re in a position to get a business loan and what amount you can borrow.

This amount will depend on a few factors including your reasons for taking out a business loan, and your credit history. For example, you may need to borrow more money if you plan to expand your operations by leasing another building, as compared to buying more equipment. 

Additionally, if you’ve got a good credit score, then it’s possible that you may be eligible to borrow a larger sum of money. However, while the opposite may also be true, there are ways to improve your credit score if you’re worried.

Another thing that will affect how much you can borrow is the provider you’re with as every lender has a different loan range on offer. Keep in mind that the lender you choose can not only determine how much you’re able to borrow, but have an impact on the number of fees you pay. So it’s good to pay attention to these things as you could end up paying more, especially if there are ongoing fees.

As such, it’s important to do your research and shop around to find the best offer that will meet your needs. 

Compare business loans today

Ready to give your business a little boost? Browse our business loans hub for some options, or start comparing below.

Business loans comparison table

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Last updated 24 July 2024Important disclosures

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