Getting a Small Business Loan in Perth

15 Mar Getting a Small Business Loan in Perth

An updated guide to funding your Perth-based small business

So you’ve got a brilliant idea, a unique selling proposition, and a marketing plan to start your own company but there’s one thing that’s stopping you—you don’t have funds. The idea of being your own boss is an exciting thought until you find ways on how to finance it. I’ve heard so many stories from people who failed to pursue their business dreams because they didn’t realise that there are a number of finance options available.

Navigating through these deals can be tricky, hence this article aims to walk you through the important things you need to know.

What types of business loans are there?

These can be split into two main types of finance: equity finance and debt finance. Equity finance is money that is sourced from within the business or from an investor and doesn’t need to be repaid. Debt finance is money that is borrowed and needs to be repaid. Here are some examples of equity and debt finance:

Equity finance

• Self-funding
• Venture capitals
• Initial public offering
• Investments from family and friends
• Private investors
• Crowdfunding
• Government grants

Debt finance

• Loans from banks
• Loans from standalone business lenders
• Invoice factoring
• Loans from family and friends

Lenders have different criteria to determine whether you are eligible for a loan. Want to know if you are? Chat with me today.

Small Business Loan Requirements

The following list includes general requirements. The lender may require additional documents along the way.

• Accountant-prepared financial statements
• Proof of individual income
• Bank statements
• Identification

Small Business Loans Available in Perth

If you are looking to finance your dream business in Perth, there are many options available. GetCapital offers a flexible business loan from $5,000 up to $500,000 with convenient top up and redraw facilities. Business must have been operating for 9 months+ and have monthly sales of $10,000+. Prospa lets you borrow $5,000 to $250,000 that can be funded in 1 business day. Must have a turnover of $6,000+ per month and provide 6 months of trading history, 3 months history for existing business purchases. Moula can loan you an amount of $5,000 to $500,000 that can be approved and funded within 24 hours and available to businesses with 6+ months operating history and $5,000+ monthly sales. There’s also Spotcap where it offers a line of credit of up to $400,000 that converts into a loan when you draw down.

Quick tips:

• Be clear on why you want to borrow. The outcome of your application is strongly influenced by how well your proposal is researched and how well it’s presented.
• Know how much the loan amount is. Keep in mind that the longer the loan term – the more total interest you’ll pay.

Ready to fund your dream business? Or do you still have some questions unanswered? Happy to clarify them for you. 🙂 Drop me a message on Facebook, Instagram, or you can always send me an email.

 

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.