Business Loans
Starting and running a business is expensive. You need cash right from the outset. There are cash or capital requirements that include stock, premises, business and IT systems and equipment, advertising and marketing expenses and wages. And a whole lot more. Unless you are beginning from a strong financial foundation, you’ll need to borrow the funds to cover your expenses until your business begins to turn a profit. This is where business loans can be invaluable - and where Universal Finance can help.
DIFFERENT LOANS FOR DIFFERENT NEEDS
Here at Universal Finance, we understand that different business owners have different needs, and these must be considered when seeking and financing credit or a loan for their business.
Unless you have collateral to use for a secured loan, you’ll need a loan in the form of a business overdraft with a line of credit. (According to market research by CANSTAR, 26% of business owners use their primary residence as their business loan security, whereas 74% of business owners would prefer to use commercial property for this purpose).*
At Universal Finance, we are positioned to offer the very best business loans to clients all over Australia. We work with a vast number of Australian-based non-traditional lenders, which allows us the flexibility to find the very best loan product for you – including sourcing and gaining approval for difficult loans which banks and credit unions would not normally approve.
Whether your business is a start-up or an established enterprise, we have the ideal business loan solution for you.
*Source: https://www.canstar.com.au/business-loans/types-business-loans-business-owners-want/<
FREQUENTLY ASKED QUESTIONS
What is a Business Loan?
A business loan is a set amount of money borrowed for the purpose of paying for business expenses when the said business is unable to cover those costs itself at a particular time. There are different types of business loans, including:
- Business Overdraft Loan – a line of credit attached to a savings, debit or cheque account. The lender extends credit up to a maximum overdraft limit.
- Residentially-Secured Loan – secured by the business owner’s home
- Commercially-Secured Loan – secured by property owned by the business
Business owners may also choose to take out equipment loans (chattel mortgages) specifically for business vehicles or equipment. There is an array of other specific loan products available for financing related to the operation of a business.
What Fees Are Charged on Business Loans?
Business loan lenders charge specific fees as well as interest rates that incorporate a risk margin – this is based on the lender’s determination of the business’s prospects for profitability and success within a set time frame.