Business

Top 5 benefits of Secured Small Business Loans

Have you ever heard about secured small business loans? If you are looking for a business loan, you may have noticed that there are different loan options to choose from.

What are secured small business loans? And how do they work? What kind of benefits they can give to your company?

How Secured Small Business Loans works

Secured Business Loans allows you to cover any business needs by submitting a form of collateral to receive funds. A secured small business loan is secured against an asset that you have, and if you are unable to repay the loan, the lender has the right to take your asset to pay your debt. Typical forms of security are a residential or commercial property, vehicles, machinery, or other equipment. The interest rate is lower compared to an unsecured business loan. In fact, these type of loans with security are easier to obtain because are less risky for the lender.

Best 5 benefits of a Secured Business Loan

Secured business loans are one of the preferred financial solutions for many businesses. Lending Connect has many partners that offer this type of credit option.

Here the top 5 advantages of secured loans:

  1. Lower Interest Rates: one of the top benefits of this secured loan. Getting a secured loan is faster and easier than an unsecured loan. The asset given as security allows the lender to provide a lower interest rate because the risk is limited.
  2. Access to higher loan amounts: the risk for the lender is lower than an unsecured loan and for this reason can offer you more money to borrow. With a good credit score and a solid business plan, you will easily get your loan.
  3. Quick access to the funds: you usually get your funds within 1 day from the approval process if the borrower meets the eligibility criteria.
  4. Long term repayments: the loan period depends on many reasons and on the assets that you use as security. This loan has longer repayment terms than an unsecured business loan (from 3 to 60-months term). It is possible to negotiate the repayments amount and terms.
  5. Expanding Business Opportunities: a secured loan is ideal for business owners who want to expand their business and take it to the next step.

Despite the many advantages of this loan, many Australian businesses don’t want to take the risk of providing collateral, and therefore they often choose an unsecured business loan.

Do you want to apply for a business loan?

 unsecured business loan

At Lending Connect, our experienced team can help you to choose the best finance options for your business needs.

Secured business loans or unsecured business loans? Which one is right for you?

It is difficult to say if a secured loan is a better option for you because it depends on your current financial situation and business needs.

We can assist you through the application process and analyse if you are qualified for a secured business loan or an unsecured loan. See if you qualify.

 

Business Strategy

Top 5 benefits of Unsecured Small Business Loans

Unsecured Small Business Loans are becoming the most popular choice for business owners when it comes to growing their business.

What are unsecured small business loans? And how do they work? What kind of value can this type of business loan give to your company?

How Unsecured Small Business Loans works

Unsecured Loans allows you to get access to credit to cover any business needs without providing any security. It is a short-term loan – typically up to 12-months but in some circumstances, it could stretch up to 36-months.

Best 5 benefits of an Unsecured Business Loan

Many SME often cannot provide any collateral when borrowing money. Therefore, unsecured business loans are the preferred choice if your business is having tough times and you cannot afford to repay the loan. With this type of loan, a lender cannot take your assets and sell it to recover the debt. In addition, your business can continue operating by using these assets. Clearly, businesses owners must pay the loan to the lender as soon as possible.

Here the top 5 advantages of this financing option:

  1. Fast and easy application process: unlike other business loan options, the application process for an unsecured loan is fast because does not require any personal or business assets as security.
  2. Quick access to your funds: usually you can get you money in the same day of application approval because you do not have to provide any collateral.
  3. No personal or business collateral required as security: In case of default or bankruptcy, the lender will not be to lay hold on any of your personal or business assets.
  4. Simple to get access to Finance: few SMEs meet the stringent lending requirements of the banks. Thanks to unsecured loans business owners have the option to apply for these funds even if do not meet the banks’ rigorous lending criteria.
  5. Relationship building with a lender: Loans without security represent a high risk for a lender. After all the repayments have been finalised, the lender could be able to offer better term to the borrowers, and the level of trust in its business has improved.

Unsecured business loan for any business needs

Unsecured business loans are used to buy machinery, equipment, and inventory to increase productivity and make the business grow. Furthermore, you can use these loans for:

  • Cash flow problems
  • Renovating your office space
  • Upgrading your actual equipment
  • Improving your product range
  • Optimising your advertising on Google or Facebook.unsecured small business loans
  • Creating websites
Do you need a finance broker for your business?

At Lending Connect we have a 24-hours approval process.

Get in touch with us and we will do the rest for you guiding you through a pre-approval process that qualifies you for one of our best lenders. When it comes to your business’ needs, having the right person by your side is important to improve your company. Moreover, if you need a mortgage broker, we can refer you to one of our partners.

Find out more about the advantages of our small business loan options and see if you qualify.

 

 

Business

How to get equipment financing to grow your business

Getting business equipment financing is one of the best solutions if you need funds to support your business growth. But do you know how to apply for this type of business loan?

How does business equipment financing work?

Many small businesses need specific equipment to run their company. However, most of the time they do not have enough money to purchase the tools they need. Equipment financing is a loan option used to buy equipment for a business. This is the best option if you are looking to purchase new machinery, vehicles, tools or any other vital equipment for your company. This type of loan also funds other heavy equipment that your business may need to produce goods or services (industrial machinery, commercial kitchens, etc.).

How Lending Connect can help with your equipment loan

Lending Connect offers equipment finance for small businesses in Australia. Moreover, our one to one approach allows you to get the money in your bank account within 1 day from the approval. With our network of more than 50 business loan providers, we have opportunities for every type of business.

Thanks to our experienced consultants, we help you through the process and we find the best lender that can offer the right deal for your needs.

There are different types of equipment finance available in the market. Here the most common financing options:

  • Chattel mortgage: a loan to purchase a car or piece of equipment, which is then used as security against the loan.
  • Secured loan agreement: lenders have more certainty that their loan will be repaid, even when the borrower defaults on their loan.
  • Commercial hire purchase: with this type of finance you can hire the vehicle from the lender for a fixed monthly repayment over a set period.
  • Finance lease or capital lease: a type of option in which the finance company is typically the legal owner of the asset for the duration of the lease,
  • Operating lease: at the end of the lease period the asset can return to the lessor without any further obligation.
  • Rental agreement: at the conclusion of the rental agreement, the lender retains ownership of the equipment.

Advantages of our equipment financing options

Equipment loans or asset finance is a business loan with fix term, and these are some of the benefits:

  • Up to $2 million
  • Long term up to 5 years
  • Low interest rate
  • Available for machinery, vehicles, etc.
  • Loan secured against equipment/asset purchased
  • You can buy new and used items available at different interest rates
  • Repayments can be tax deducted
  • Schedule long term repayments
  • Long term repayments usually suit the business cash flow
  • No deposit payment
  • Personalised solutions to suit your business

Do you need more information before applying for an asset finance?

business equipment financing for your business needsLending Connect, every year, helps hundreds of small and medium local businesses in Australia.

Discover our business loan options and see if you qualify for equipment loans.

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Budgeting Business

The Best Short Term Business Loans

Many SMEs tend to choose short term business loans because it is an easy way to get the money in a short period. Indeed, short term business loans can provide the money to settle down a temporary shortfall, to cover urgent expenses or to finance your business growth.

Let’s have a look at the best top 3 short-term business loans for your company.

Top 3 short term business loans

There are different short-term loans available with different advantages. Let’s analyse the key features of our three best short term finance options to ensure you choose the solution that best fits your needs.

  1. Unsecured Business Loans
  2. Business Line of Credit
  3. Invoice Finance Factoring

Unsecured Small Business Loans

An unsecured business loan allows you to borrow funds without providing collateral as security. This type of loan is easy to obtain with fast approval and can be an effective solution to seasonal ups and downs.

  • Up to $250k without collateral
  • Up to 36-month term (typically 12-month term)
  • Used for any business purpose
  • Trading for a minimum of 3-6 months
  • Quick approval process
  • Same day funding
  • Rates change from lender to lender subjected to application strength

Generally, lenders consider the application based on the business cash flow and the client’s credit history. Alternative lenders are willing to take a higher risk than financial institutions. Consequently, due to the greater risk, lenders offer a higher interest rate.

Lending criteria are different from lender to lender. At Lending Connect we care about our client and we work in order to secure the best deal with one of our partners.

General lending criteria for an unsecured loan:

  • Be an Australian Business with an active ABN
  • Annual turnover of minimum $75k
  • Trade for a minimum of 3-6 Months
  • Have a profitable business with a good cash flow
  • Show good credit score

Unsecured business loans are generally short-term by nature but in certain cases, our lenders can offer this type of loan from 3 months up to 3/5 years.

Business Line of Credit

A business line of credit is a flexible finance product that can help you with irregular or unpredictable cash flow difficulties. You only pay interest on the balance you use and can access money fast as they are required. Beside other loan options, the borrower does not receive the full loan amount at once, but only to cover business expenses.

  • From $5k – $100k
  • Flexible term
  • Interest-only on the amount drawdown
  • Set up within 1-2 days
  • Product approval lasts for 12 months before reassessment is required

Our lenders usually require your bank statements, balance sheet and income statements to apply for this loan.

Invoice finance factoring

our best short term business loansInvoice finance factoring is a type of loan that can offer a quick boost to your cash flow.  Businesses sell invoices to a factoring company at a discount and they help companies release cash from their debtor. The best option if you need cash as soon as possible.

To apply for this loan our lenders require:

  • ID document
  • Customers list
  • Copies of the invoices you want to factor
  • An aging report for your accounts receivables
  • Access to your accounting system

Are you looking for a short term loan?

At Lending Connect we can help you to choose the best finance options for your business needs. Get in touch with one of our expert consultants and see if you qualify.

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