When starting a business there are a lot of things to take into consideration; from location to mission statement, employees to business plans, but it all starts with securing a great business loan. It can often feel overwhelming, particularly if you’re a first time business owner, but it’s not as scary as it may seem and there are people who can help you along the way.
We’ve compiled a list of four recommendations to help you get the right business loan and help you make the most of it.
Answer the question ‘why?’
The first thing you need to do when considering a business loan is to determine why you think you need it. It’s always a good idea to outline exactly why you need the loan and what you’re going to use it for. This will affect the type of you loan you choose.
Know your limits
Determining what you’re looking for is important, but knowing your own limit is essential. You need to ask yourself some important questions to make sure you’re getting the right loan for you.
Can you answer these questions?
- What is the maximum repayment you can COMFORTABLY afford?
- What is your Loan to Value Ratio?
- What assets can you offer as collateral (should you need it)?
- Who will be your guarantor (should you need someone)?
- How much equity do you have?
If so, you’re ready to start comparing business loans today.
Compare business loans
It’s always smart to compare. Don’t jump on the first loan you get: stop and take a step back. Make sure you’re happy with all the terms outlined and most importantly, that you understand all the terms outlined. A business loan is a serious decision, so take the time to learn about it and know your options before taking the leap. Business loan comparison is not meant to be taken lightly, ensure that you’re making an educated decision before signing off.
Understand the true purpose of a business loan
A business loan is meant to be leveraged to make you money, not cost you money. So stop looking at it as another payment to make and start looking at it as a way to transform your business. If you’re careful and use your business loan strategically, you’ll see the results you want.
If you need assistance with applying for a business loan, or just want some more information, contact our friendly team on 1300 003 003 today!