Broc Finance

  Have you ever been asked to give a personal guarantee while applying for a business loan? A personal guarantee (PG), also called a director’s guarantee, is a common requirement in lending circles. For most of the   business loans , lenders would ask a PG from the director/major stakeholder to reduce their risks. But what does a PG mean and why do lenders want it? You must know what you are signing up for when you agree to a PG. Let’s break down this concept and decode what it means for you!   Personal Guarantee for a Business Loan: Here’s What it Means When you sign on the dotted line and accept a PG, it means that you will be liable for your business debt if your business fails to service or repay the debt. As the director or owner of the firm, you will bear personal liability for your small business loans . In case your firm defaults on loan repayments, a PG allows lenders to cover their losses by liquidating your private assets. For example, they may pursue you...

  Credit agencies assess the creditworthiness of business organisations and assign scores to help lenders make better decisions. These credit scores capture multiple aspects of an organisation's credit history: repayment records, the debt amount, types of credit instruments, etc. When business owners apply for business loans, lenders evaluate credit scores to determine their eligibility and credit worthiness. If you/your firm has a high credit score, you are more likely to get favourable loan terms and options. On the other hand, a lower credit score can lead you to shell out more interest while repaying your loan. You can often get bad credit business loans . However, it is better to boost your creditworthiness to land better deals. Let's break down the expert tips to improve your small business credit score!   Why Is Your Credit Score Low? Different credit agencies have varying criteria to ascertain your creditworthiness. But in general, one’s   credit score tends ...

  The holiday season is a boon to business owners who can optimise their cash flow and cater to the demand! Businesses need adequate cash to keep pace with this demand by stocking up on inventory and hiring more staff. During the holiday season, a loan instalment can be an added burden on business owners. It can reduce the cash flow buffer and stretch their resources at a critical time. In such a scenario, a repayment holiday on their business loans can help them defer the instalments. Did you know that there is a special offer for businesses to get an 8-week repayment holiday during the end-of-year festive season? Let’s break down what a repayment holiday means and how it helps businesses.   Repayment Holiday for Business Loans: What Does it Mean? A repayment holiday is a short-term break when you do not have to pay the instalments for your loan. Borrowers have to pay contractually stipulated instalments regularly to repay their loans. They usually have to make these re...

  If only there was a credit card, which could be used to cover the minor day-to-day business-related expenses, like inventory and expansion; it could help the owner to minimize the capital deficit. Well, that’s what they call a business line of credit. It is one of the most beneficial forms of  business loans  or business financing for SMEs in Australia.    If you are new to the world of business or have limited knowledge of how financing works, we will give you quick know-how on  a business line of credit in Australia , touching all the basics on the topic.    Understanding the Concept of Business Line of Credit A business line of credit is a financial commitment between the lender and the borrower on an ongoing business loan with a credit limit.   The business owner can use it to: ·         Re-stock inventory; ·         Pay off the utilities;  · ...

  Credit score or credit history is one of the decisive factors for loan approval. The lender would assess your creditworthiness before giving a yay or nay to your application for  business loans . Banks for one are infamous for rejecting loan appeals solely based on the poor credit history of the applicant. Other than the approval, the feasibility of your loan terms and the interest rates are heavily influenced by the good/bad credit.    Based on all of these aspects, it is a preconceived notion among business owners that it is impossible to get funding with bad credit. Well, to that we say this; yes, it might be tricky, but it is not impossible. You can get  bad credit business loans  from private lenders and investors, that too with favourable loan terms. Sounds too good to be true? Let’s clear your doubts with further explanation..    Understanding a Bad Credit Business Loan  Bad credit business loans   are financing alternativ...

  Small businesses are always on the search for scalable growth tactics that can be done with little or no money. However, when the big-budget opportunities come knocking and budding enterprises fall short of money; a  small business loan   can come in handy. Small  business loans   offer a quick injection of cash that can help start-ups and growing businesses in getting up and running without any hiccups. So, without further ado, here are the advantages that a small business loan can have for businesses.    Small business loans have a quick application process Small business loans can be approved faster than traditional lending alternatives. Usually, lenders for small business loans offer a quick and easy application for borrowers, so business owners can get a loan seamlessly without lengthy application processes.    A safety net at times of emergencies One of the bitter truths of small businesses is that they are more prone to...