Deciding how to approach financing needs for your small business is an overwhelming and daunting task, as the financial world can be quite intimidating and confusing.There is a wide range of products available to cater to the needs of small businesses, and funding can be secured for a variety of reasons, in a variety of fashions.Explored in the article are some of the options available for consideration, to better acquaint you with the various types and sources available for funding.Prominent lenders and banks are happy to offer clients many resources for funding their professional endeavours including:
Business Term Loans
Business loans are available for all general business purposes other than residential property, where you may be best off looking at fixed rate home loans from NPBS. The borrower is required to provide security for these loans. Loans offer flexible repayment options with amortisation up to 20 years. Interest rates can vary greatly and are determined by calculating the current interest rate plus a margin for the risk factor.
Business Overdrafts
A business overdraft is essentially a line of credit attached to the business account. They offer many advantages, including limited administrative charges, variable interest rates, access to internet banking conveniences, flexible borrowing opportunities with no fixed repayment schedule and interest payable on credit balances.
Leasing and Equipment Finance
Because of the way assets and equipment are financed they can have a significant impacton a business’s bottom line. This avenue of financing includes funding for items and expenses like commercial vehicles, medical and dental equipment, engineering equipment, computer systems and specialised equipment to a name a few. Financing packages are tailored to address each business’s individual needs.
Residentially Secured Business Loan
These loans offer fantastic rates for any business purpose, and there are many benefits including flexible repayment terms, amortisation up to 30 years, no valuation fee, no administration fees after the loan is secured, and no society legal costs, making this a desirable financing option. These loans are available to for business owners who intend to use a residential property to provide security for the loan.
Financial Institution Guarantee
This is a formal obligation to another person or business. The purpose of a financial institution guarantee is to eliminate the need for cash to provide a bond or deposit; the lender instead vouches for you. A financial institution guarantee is a great tool for any business and is useful in a number of scenarios and requires security by either a property or fixed term cash deposit.
Is a Business Credit Card the Answer?
If you are just seeking more available resources for your business, perhaps a Business+ credit card is the solution you are looking for.
Securing a credit card for your business can be a simple and easy way to manage and track company expenses, as well as providing a cash resource when necessary.
Using the credit card can provide many benefits including fraud and theft protection on lost or stolen cards, multiple cards per account, both cardholder and account level statements, the ability to balance transfer, cash advance and transfer funds all at a competitively low rate. Businesses can also enjoy up to 44 days grace before accruing any interest charges.
This provides a lot of versatility and convenience for a business of any size.
Whatever your borrowing needs may be, it is important to understand your options, and carefully select the lending product ideally suited to your business and its financial needs. Let the professionals at reputable lending institutions advise and guide you to making the best decision for your company or for your personal goals.
