One questions that we get asked all the time is “how can I get a business loan from Funda?”. So, we thought we would take you through the business loan process as well as the things to know before getting started on your own business loan application.
Why get a business loan?
Let’s take a look at the main reasons why we lend to business owners:
- To purchase inventory
- Inject working capital to assist with cash flow
- Make equipment purchases
- Fit-outs of new spaces or renovations of existing ones
- Business expansion (e.g. hiring new staff, implementing marketing plans, launching a new product, opening a presence in a new area)
- Assist with tax debt
If you have been wondering if non-bank (also known as fintech) lending solutions might be the financing option your business has been missing, or would just like to know more about your options, this article here is for you.
Benefits of non-bank lenders
The non-bank lending industry has brought a new level of ease to obtaining funds in Australia which has helped hundreds of thousands of businesses reach their commercial potential. Some of the main reasons why the alternative loan market has become so popular include:
- quick turn around times,
- streamlined application processes
- and unsecured loan options.
How to compare options.
Our advice to business owners is to compare like-to-like. It’s important to shop around, however comparing a factor and a diminishing principal interest rate is not comparing apples-to-apples. The way we recommend weighing up your options is by looking at the contract value. All loan quotes you receive should list a contract value. This is the total cost of the loan over the term of the loan. It is the best way to understand the true cost. But remember to also take into consideration how making extra repayments will impact the cost of funds.
It’s also wise when looking at providers to see if there are multiple business financial products on offer. Sometimes by doing a little extra research, you might find a slightly different finance product that suits your business’s needs better than the original finance solution you had in mind. At Funda we have four business finance products:
- Business Loans: Secured and unsecured business loan options up to $250,000 with leading loan terms of up to 5 years. But not only that, we do not penalise you for repaying your loan early. We give them the freedom to ensure our financial solutions are working in their business’s best interest.
- Lightning Business Loans:Our Lightning application process means that less paperwork and supporting evidence required for business loans under $20,000. Even quicker and easier access to the funds your business needs.
- Better CashFlow: Helping you get back to doing what you do best – running your business. We pay up to 98% of an invoiced amount right away and we chase up the payments.
- Line of Credit: Only pay for what you use. Having a line of credit in place gives you the peace of mind to simply draw down the funds as your business requires.
There are also free tools you can find online, such as our business loan calculator, which will allow you to understand exactly how much your monthly repayments will be based on the amount you need to borrow and how quickly you wish to pay it back. At Funda we offer loans up to $250,000 for a market leading term of up to 5 years.
Minimum eligibility criteria
Now you have done your research and decided which business finance option is best for your business, the next step is to check you meet the eligibility requirements. While a business loan application assessment is based off many varied business performance indicators (such as company financials, credit score and serviceability), the minimum eligibility criteria will give you an indication of if you qualify to submit an loan application on your business’s behalf. Our minimum eligibility criteria are:
- Get in touch with us. Call us, email us, DM us or IM us – it’s up to you. Before we get anyone to complete our online application we like to speak with the potential applicant over the phone.
Why? So we can get a feel for your application and try to spot any red flags that may come up once the formal application is submitted. But why do we bother with this? Two reasons: firstly, it will save you precious time, and most importantly, once an application is submitted it gets recorded on your credit file and effects your credit score, if there’s an issue that comes up during the conversation that means your application would not be approved, we will tell you at this point so there is no adverse impact on your business credit.
- Complete online application. A dedicated Client Service Manager will send you an email with the link to complete your online application.
- Send supporting documents. Your Funda contact will also send you a secure link to instantly verify the main business trading account/s to provide us with viewing access to 3 months bank statements.
Decision time frame
Once these three steps are complete we assess your business loan application within 12 business hours. If we can’t the first month’s interest is on us! In most cases funds are in your nominated bank account in 24-48 hours.
How can I get a business loan with you? Piece of cake.
So, there you have it.
Research, choose the best option for your business, check you meet the minimum eligibility criteria, chat with the finance provider & complete the online forms and requests. Get funded!