Are you thinking about securing a small business loan in Perth?

Then our team here at Finance 48 might have some advice that may help you. Here are our 7 tips for securing a small business loan in Perth.

What is realistic? Work it out

First, work out what you need and do some research about options in the market. Base this research on:

• Type of security you want to provide (property, vehicle, none)
• The amount you need to borrow
• What you can afford to repay
• How you want to use it

Make sure you partner with a business broker in Perth

The next step is to partner up with a business finance broker in Perth. They can help you work out the business loan appropriate for your business needs, lenders out there who are offering them, and the strategy for success. (And they’ll do all the leg-work for you)

Have a good credit history

Lenders are always more willing to approve a business loan if you can demonstrate that you’re managing existing commitments well. Where possible, keep on top of loan repayments and stay up to date with ATO and Super contributions.

Actively show a strategy on how risk is minimised

Show that you have a risk management strategy in place. Most lenders make their decision based on the risk to them. If the risk is unknown or too high, they will likely reject your request. Think about how you might deal with repaying a debt if your cash flow changes.

Be prepared for anything

Make sure your tax returns are lodged on time and you understand them. Be able to explain how your revenues are derived, who your clients are, what your cash flow looks like and, importantly, why borrowing more will improve your position.

Have a plan

Make sure a business plan is a good resource to you and your potential lender. Lenders like to see a business plan that shows direction, defines what you want to achieve and how you can achieve it.

Provide more than one exit strategy

Lenders want to know how they’re going to get their money back from you. An exit strategy is always something lenders like to see, to know that you plan to grow your business, and see its longevity. Here are some examples:

• Primary exit: Making repayments from normal cash flow in the business;
• Secondary exit: Selling the asset you borrowed money to buy; and
• Tertiary exit: If your business can’t afford the repayments and the asset you buy is not worth anything, how will you ensure the lender gets its money back?

Entrust Finance 48 for all your small business loans in Western Australia. We are your one-stop shop for all your mortgage and financing needs. Be sure to get in touch today, and to browse our services here.