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Showing posts from November, 2022

Short-Term Business Loans: Here’s How To Choose The Right One For Your Business

    Working capital is the lifeblood of any firm’s business operations. However, reports suggest that as many as 92% of Australian SMEs experience cash flow challenges at least once a year. Cash flow problems can occur due to many reasons. Delayed payments, seasonal fluctuations, and other operational issues can cause cash constraints in a business. Short-term business loans can help entrepreneurs navigate these obstacles with quick funding solutions. A short-term loan is repayable within a brief period. In Australia, short-term loans are provided for a period between 3 to 36 months. There are different options and interest rates available for businesses to explore. Let’s break down the factors you must consider before choosing a loan!   Types of Short-Term Loans for Businesses in Australia Australian businesses can choose between different types of short-term business loans. Here are some of the popular options available in the market: ●    ...

Why Businesses Need Debtors Finance to Fix Cash Flow Gap

  Cash flow disruptions are the most concerning factors that impact the business capital negatively. Sadly enough, this is a recurring issue with most Australian businesses, especially the ones hailing from the SME sector. That’s where you need financial aid through business financing solutions like debtors finance. What is it? Why do businesses need it? How it can help one fix the cash flow gap? Let’s explore.    Understanding Debtors Finance Debtors finance is a form of business financing that allows you to receive funds against a portion of your accounts receivables. It is effective in boosting the working capital or cash flow of a business. You basically get an advance payment against your debt or unpaid invoices from the lender. You can use this to pay your suppliers, stock the inventory, or invest in business development. A growing business can significantly benefit from this arrangement and fix the cash flow gap by getting financed up to 90% of the accounts ...

FAQs on Business Line of Credit in Australia

  When in cash flow urgency, business owners resort to multiple financing options to replenish the funds and minimize the cash flow gap. There are different types of business financing options you can choose from, depending on your cash flow needs, business objectives, and urgency. On that note, this blog will answer some of the frequently asked questions about a business line of credit in Australia, which is a common financing option for small business owners.   1. What is a Business Line of Credit? A business line of credit is like credit for business owners that have a line of credit offered by the lender. The borrower can use the funds within the set limit for development purposes, supplier payments, or anything else related to the business. It is beneficial for businesses struggling to manage their cash flow deficits. The credit line ensures business continuity and offers easy access to cash in emergencies.      2. How Does a Business Line of...

Forklift Finance: Essential Facts You Must Know About It

  As the name implies, forklift finance is the kind of business finance that one uses to buy heavy industrial equipment like a forklift for daily operational execution. Companies that need heavy lifting in their day-to-day work, like warehouses, dockyards, construction, recycling plants, etc., can benefit from  forklift finance . Buying or leasing heavy industrial equipment requires significant capital, which can be difficult for a small business. That’s where forklift business financing comes to the aid of the business owner.       Defining Features of Forklift Finance Forklift finance has the following salient attributes. There is no need for a down payment. You can borrow up to 100% It is applicable for both used and new forklifts.  You do not necessarily require to provide a collateral as the underlying asset works as a security for the lender.  Since it is tax deductible, you can earn significant tax b...

How is Business Vehicle Finance Different from Consumer Car Loans

  Businesses involved in the delivery, transport, or movement of goods or services from one place to another require vehicles for seamless operations. Some might require a whole fleet. But what do you do when you cannot afford to buy or lease the vehicle with company funds? If it's for business purposes majority of the times, the easiest way to access funds is through  business vehicle finance . Don't mix it up with a consumer car loans. They are not the same, and in this blog, we will try to help you understand their distinctions.    What is Business Vehicle Finance? The term is self-explanatory! Business vehicle finance is the kind of financing option that allows one to secure funds to buy a car or a fleet for business purposes. It is a fixed-term financing option with a fixed interest rate. The loan terms vary between 2-7 years.  You can buy both used and new cars using the loan amount. There is no need for collateral, as the vehicle acts as an asset ...

Most Popular Asset Finance Options in Australia

  A business is nothing without the tools of the trade, and the equipment you need to maintain operational continuity. If you are a printer, you need a few high-end printing machines. Businesses that require delivery of goods require trucks, and construction companies need heavy-duty equipment and vehicles like earthmovers, forklifts, etc. While these might be essential business assets, acquiring them is not easy, especially for an SME or a new business. That’s where  asset finance  comes to your rescue.   Understanding Asset Finance What is an asset? To understand asset finance, you first need to define an asset. Equipment or item which depreciates over time, such as a vehicle, equipment, plant and machinery, etc., can be an asset. These hold value for the business. Owning an asset allows you to peg it as collateral for future loan applications.  Asset finance helps enterprises secure the necessary funding to buy tools of the trade, minus the massive do...