1. Control on High Operational Costs
Running a business means facing daily operation costs. You can manage them better if you have access to additional funds, which is what small business loans offer.
2. Added Transparency
Credit providers have to comply with stringent government regulations as laid out by the Australian Securities and Investments Commission (ASIC) in the National Consumer Credit Protection Act 2009 . This means you are guaranteed a transparent process and will not be treated unfairly.
3. Business Growth
If your business has been stagnant for some time, a small business loan can help it grow. Exploring new avenues is only possible if you have stable finances.
4. Increased Profit Margins
As you have more money to invest, the chance to get higher profits increases. However, remember that you need to act wisely with the money you borrowed so make the most of it. It’s a good idea to get financial consultants to help you out.
5. Better Credit
Making timely payments on your small business loans will give your credit score a boost. This gives you better chances of getting lower interest rates on future business loans. Moreover, a better credit score means it’ll likely be easier to get loans in the future.
6. Relatively Low Interest Rates
Small business loans have lower interest rates than other financing options. The rates will be determined by your business’s credit history or the whatever collateral you put up.
7. Tax Deductions
By securing a small business loan, you become eligible for certain tax deductions. The deductions will depend on your company expenses, so be sure to keep your records intact and up-to-date. More details are available on the Australian Taxation Office website.
8. Variety of Options
Many lenders in Australia have different loan options for small businesses. The government also offers loans for different businesses. The huge variety of options gives you plenty of opportunities to find out the one that best fits your organisation and needs. Capify, one of the most trusted leaders in small business financing in Australia, offers small business loans as well as merchant cash advance.
9. No Profit Sharing
Some lending companies or investors would want a say in your business and/or a share in your profit in exchange of a loan. While some business owners may be willing to share profit, most will look for options that do not involve profit sharing. This is why small business loans are a preferred option for business owners, as some lenders are only interested in interest, and not profits.
10. Quick Availability
It takes anywhere between a couple of weeks to a few months for a business loan to be approved. The duration can be taxing for a business owner, especially if they are in dire need of money. This is when small business loans can help. While most traditional lenders approve small business loans in a matter of weeks, Capify can give approvals within minutes.
11. Less Paperwork
The tediousness of the loan application and approval process aims to minimise, if not eliminate, red tape. This is why most lenders including banks and investors take months before sanctioning a loan. Small business loans, however, don’t take that long or tedious. In most cases, all you have to do is submit a few requirements and a decision can be made in as quick as a few minutes.
12. More Inventory Quickly
Update your depleted inventory stocks with the newly secured cash. Your revenue streams and cash flow will show rapid improvement as well.
13. Boost Employee Morale
You can use a loan to pay higher bonuses or offer better incentives to your employees. You can also use the borrowed money to make changes such as adding better equipment to increase productivity and save employee time.
14. Seize New Business Opportunity Quickly
A common habit of most successful entrepreneurs and business owners is never letting a good opportunity slip through their hands. If one presents itself, make sure to seize it even if you have to apply for loans.
15. Better Talent In Your Workforce
Being able to offer higher salaries than your competitors lets you hire more qualified and creative people. While most people would question the logic behind such a step so early, it can turn out to be a good investment in the long run.
Keeping employees happy and satisfied means they’ll be more productive at work, which leads to better output. This puts you in a position to charge higher for your services and be able to pay back the loan.