According to the latest ABS Counts of Australian Businesses, as of June 2018 industries with the largest number of small businesses in WA are construction, professional scientific and technical services, rental, hiring and real estate services, financial and insurance services, agriculture, forestry, and fishing. Western Australia is also a competitive exporter of minerals, petroleum commodities and the mining industry, which accounted for 30 per cent of gross state product in 2017‑18.
The Western Australian economy grew by 1.9 per cent in 2017-18, following six years of declining growth due to the completion of major construction projects in the capital city of Perth. This led to total employment falling in 2015-16 and again in 2016-2017. A small increase in business investment in 2017‑18 by the government and an improved investment outlook into a small business is now supporting job growth.
Perth businesses need support from the local government due to the lack of access to funds being a result of slow business growth and economy. A business lender like Capify can help business owners access short term business loans under 12 months with an easy application process that can help them with having working capital for their business in 24 hours.
It may seem like a lot, but getting loan approval, in general, isn’t as difficult as you may think. In fact, you have a lot of options for financial aid to make your coffee shop dreams come true. You also have coffee addiction on your side, with 75% of Australia’s population reaching for at least one cup of Joe a day—if not two or three. It’s safe to say that starting a cafe business is a sure thing.
The best part about coffee shop business loans is that lenders take into consideration more than your profitability. They’re already aware that it takes a while for you become profitable in the coffee business. They’re more interested in your credit score and potential cash flow as well as your debt history. They want to get an idea of how likely you’ll be able to pay back your loan.
Of course, if you don’t have strong credit or much business history to show for yourself, there’s still hope. For example, you may not qualify for a straight forward business loan with flexible terms, but you may qualify for an equipment loan or other types of financing.
So what are the differences between bank loans and online business loans? Let’s take a closer look:
The majority of small business owners turn to the bank when they need to apply for a business loan. It’s important to mention that some banks will only lend to business owners who already use their banking services.
Banks also have some hefty requirements, which include in-depth paperwork to even be considered for a small business loan. The first chunk of this paperwork is proof that you’ll be able to afford their loans in the first place. This means they’ll need copies of your financial records for a minimum of the past two years. Those financial records will have to include copies of your profit and loss reports, tax returns, and balance sheets.
Banks also typically require you to secure your loan with an asset. This means you’ll have to put your property up for collateral, or another item of high value such as your car or an expensive piece of equipment from your shop. While your loan still has a balance, you won’t be allowed to sell any of the assets you put up as collateral either. If you fail to pay back your loan, the bank will sell the collateral assets to recuperate what they’ve lent you.
In some cases, bank lenders may require a business plan from you as well as competitor reports, contracts you have with your suppliers, and projections for profits and losses. This is all to determine how you’ll be able to make future payments on your loan. It’s also crucial that you have a good credit history without a large amount of outstanding debt. This goes for both your personal history and your professional history.
They’ll want all your credit history dating back to at least five years, and they’ll comb through everything. This includes any overdue accounts and late payments on bills and other loans. The entire process for loan approval can take more than a month, and it’s encouraged that you seek out a professional to help you get your documents in order.
The process for getting an online business loan is less intense and more streamlined than that of bank loans. Australian lenders for small online business loans don’t require as much paperwork, which speeds up the application process. The documents they typically ask for include:
Unlike banks, online lenders don’t determine your eligibility based on your credit score and history. They look at your current cash flow and revenue to determine how you’ll be able to pay back your loan. This means that many lenders will approve you for a loan even if you have bad credit. Some don’t require a credit score at all.
As for collateral, that depends on the lender. Not all lenders will require collateral for online business loans. These types of loans are referred to as unsecured loans. We’ll talk more about those in a bit.
Online lenders also vary in their specializations. You can find lenders that specialize in small business loans with short repayment terms and others who work with new business owners that need start-up capital. These lenders exist because they understand that especially new businesses need funds to grow and expand. Banks aren’t as lenient and accommodating.
Of course, different online lenders have different requirements and loan amounts that they’ll approve. They also offer different types of loans to fit the various needs of individual business owners. These types of online business loans fall under the unsecured business loan umbrella.
Speak to a lending specialist today on 1300 760 930 to get funds in 24 hours or start your application and apply for a business loan now.
Capify provides fast business loans in Perth and is one of Australia’s leading finance firms that obtain the purpose of providing funds and assistance to any type of business who require it.
Capify is different from competitors with heavy support in WA with a dedicated BDM based in Perth Dino Pacella, helping service brokers and providing easy access to unsecured business loans.
Capify is an alternative to the big banks like Commonwealth, ANZ, Westpac and does not offer a line of credit or interest rates, instead, they work with a fixed rate. Loan terms range from 3 months to 12 months and their loan amounts range from $5,000-$300,00.
The great news is that Capify’s application costs are free, we don’t charge you when you submit an application for a small business loan in Sydney. It’s obligation-free and you can commit whenever you are ready.
A great financial product that Capify can provide is Merchant Cash Advance, where this revolves around businesses gaining a lump sum of money and repaying it through minor percentages of their EFTPOS transactions. This would greatly benefit the business as it would prevent cash flow shortages, thus they are able to have the cash to pay debt payments, expenses, and unexpected costs.
Furthermore, enterprises are also introduced to the option of Sydney business loans that Capify can provide, increasing capital, thus increasing cash flow. Alongside this, they deliver expert advice that contains knowledge and techniques on how to improve cash management to assist in keeping your business as healthy as possible.
Capify is Australia’s first small business lender since 2008, we have built and maintained a google review of 4.5/5.
Speak to a lending specialist today on 1300 760 930 to get funds in 24 hours or start your application and apply now.
Capify was born out of the desire to offer small businesses an alternative and accessible lending option. Proudly we were the first to do so in Australia. With 10+ years of local experience providing small business loans working capital globally, Capify is Australia’s most experienced alternative lender to small business.
With a focus on customer service and simplicity; our vision is to support Australian businesses with tailored financial solutions and solve small business finance. With our philosophy, we work together to create the most flexible and accessible commercial business loans for our clients. This allows us to streamline our internal processes passing on time and cost savings to you.
Capify is Australia’s Leading unsecured small business lender, and you can easily find us on Finder.com.au, Canstar, Mozo, InfoChoice, and other financial comparison websites.
We ensure our team have a comprehensive knowledge of the Australian SME market and can truly understand your business needs, aspirations and need for finance. Our small business lending consultants will guide you through the entire small business loan process from initial quotation to funding.
Mozo says “With more than ten years of experience, Capify has been helping Australia’s small business owners reach new heights with their tailored funding solutions. The lender provides unsecured business loans which are flexible and accessible, and its simple application process makes getting funding a breeze”.
We don’t use interest rates for our funding solutions.
Instead Capify offers an agreed total payback amount. The payback amount depends on the type of business you operate and the term you require the business finance for. This way your business knows up front the total costs, making managing your cash flow easy.
Capify is a fin-tech and purely operates online. We do not have a physical branch. However, our office is in Parramatta Sydney.