Get Maximum  COVID-19 >> Stimulus Package <<  For Your Business.  Learn More  or  FREE Call 1800 940 521

7 Tips to secure a business loan | Oyster Hub

7 Tips to secure a business loan

By Vik Naidu

Blog Post (22)
  • Securing a business loan in Australia isn’t necessarily difficult but knowing how to navigate your way can be the difference between success and failure.

    Banks and other financial institutions offer a wide range of business finance options, from commercial property loans, commercial vehicle leases, and commercial and equipment leases, to simpler options such as letters of credit, overdrafts and lines of credit. Here are some tips on how to improve your chances of success.

    1.    Work out what is realistic

    It’s a good idea to find and compare credit options based on the amount of money you need to borrow, how you want it supplied and the type of security you want to provide (residential, non-residential or none at all).

    2.    Find a Finance Broker

    The next step is to speak to an accredited finance broker such as Oyster Hub, who can help you work out what loan type and lender are appropriate for your business and you. finance brokers work with clients to determine their borrowing needs and abilities, select a loan suited to their circumstances and manage the process through to settlement. They also do a lot of the legal and other paperwork, they have access to a wide range of loans and are experts in the area.

    3.    Have a credit history and make it good
    Lenders are looking for two things when it comes to your credit status: an existing credit relationship and a relatively clear history. If a borrower already has an existing loan which they’re servicing on time, they are much more likely to be successful. Of course, there are options for those who are either credit impaired or just don’t have a documented credit history, and a finance broker can help clarify these.

    4.    Actively show how risk will be minimised
    Demonstrate how you will lessen the risk to you and to the lender. Your finance broker can help.

    5.    Be prepared
    For your first meeting with your finance broker, have up-to-date paperwork and tax records, make sure you’ve done your research and have a fair idea how much you want to borrow and how you plan to spend it. You should also know your total worth, listing your assets and liabilities.

    6.    Have a plan
    Lenders like to see a business plan that shows that you know what you want to achieve and have a clear idea of how you can achieve it.

    7.    Provide more than one exit strategy
    Lenders want to know how they’re going to get their money back and some want up to three scenarios for what is called the ‘exit strategy’.

    To give your business a good chance of success, talk to the team at Oyster Hub about finding the right commercial financing options specifically for you!

    Book your free discovery call today and get in touch with one of our Hubsta’s to help move your business forward!

    Discovery Call

Related Article

Adarsh Dutt portrait image
Adarsh Dutt
Strategic Business Accountant
I am highly passionate about helping small business owners save more time and money through automating lazy accounting tasks using cloud-based accounting technologies so you can spend time with your family, fulfil your passions and do the things you love!


Need help with your Business & Finance?

Sign Up for Our Latest News

Get in Touch (02) 9158 5444

Something went wrong. Please check your entries and try again.

Social Share

Scroll to Top