Applying for a business loan
Since business loans are used to finance business operations, equipment or property, lenders need to know about the financials of your business when you’re applying for a business loan.
You need to demonstrate to the lender that your business will generate the cash flow necessary for you to meet your business loan repayments, as well as all of your other essential business expenses. A solid business plan (including realistic financial budgets and forecasts), a good credit rating and a profitable trading history will help your business loan application to be approved
There is a wide range of business lending products available to suit different business purposes and budgets.
You can generally tailor your loan repayments to suit the cash flow of your business.
Loan interest and fees are tax-deductible from business income.
Making your repayments on time will help you to develop a good credit rating so that you can continue to borrow funds to invest in (and grow) your business.
Business loans are generally perceived by lenders as being higher risk than many other types of loans. Lenders therefore usually charge higher interest rates and have stricter lending criteria that you need to meet for business loan approvals.
The repayments on a business loan will impact the cash flow of your business.
If you miss your repayments or default on your loan, it will harm your business’ credit rating, making it difficult for you to get any finance in the future.