When it comes to running a business, no one understands their offering better than you - the business owner. However, many people aren’t aware of the benefits and offerings available to business owners and the processes, including how to get a business loan.
Business loans come in many different shapes and forms. Finding the right one to suit your company's needs can be tricky to navigate. With the help of an Inovayt commercial finance broker, you can find your perfect match.
How to get a business loan
When it comes to obtaining a business loan, here are the steps we recommend taking.
1. Book an appointment with an Inovayt commercial finance broker
Your commercial finance broker will guide you through the business loan process from start to finish and provide ongoing business support.
2. Discuss what you would like to use the loan for
Once you’ve booked an appointment with an Inovayt commercial finance broker, they will discuss with you your business goals and objectives to find out what business loan would be best for you.
3. Work with your professional to submit your loan application
When you and your commercial finance broker have decided which business loan works best for you, they will assist you in putting together your application. Your professional will assess the following:
- How much you need to borrow.
- The type of loan you’ll need.
- The length (term of the loan).
- If your business can afford to repay the loan, plus interest and fees.
- What security can you offer the lender, and how will it affect the interest rate.
After they’ve received this information, they will submit your application for approval.
How does it work?
So, how do business loans work? Business loans generally have much lower interest rates and offer extended terms from 10-30 years. Fixed and variable interest rates are both available for business loans. A fixed interest rate means the interest rate remains the same for the duration of the loan. A variable interest rate indicates the interest rate can fluctuate in line with the market. Loan repayments can be both interest only or principal and interest.
When applying for a business loan, lenders evaluate the company’s history, the amount of debt the company has, the financial turnover and profitability. To be considered for a business loan, your business needs to be over 12 months old with completed full years’ financials as a minimum. Our commercial brokers know how to best position you to be approved by a lender of choice.
What can business loans be used for?
Business loans are an opportunity for your business to grow and can be used for a variety of things. Some of these include the following:
- Expanding your business
- Getting your inventory right
- Keeping the cash flowing
- Financing new equipment
Business loans are traditionally secured by residential or commercial property. However, unsecured options are starting to be offered by lenders that are interested in seeing smaller businesses grow. Lenders want to know how the company intends to use the borrowed funds, so business owners must make sure they clearly outline how the money will be spent. Both unsecured and secured lending will require the business to meet certain turnover and profitability criteria.
Looking for more information? Download our free guide on financing your business.
How can an Inovayt commercial finance broker help?
Working with a commercial finance broker makes obtaining a business loan easy. At Inovayt, we work hard to get the best outcome for your business. Here is what makes our team of commercial finance brokers different.
We get to know you
Before we dive into your application, we want to get to know you and your business. Once we’ve identified your business goals and what you want, we will source the most suitable loan and negotiate across our lending panel to get to the right deal that works for you and what you’re looking to achieve.
We work with you
Our team are on your side and strives to get the best possible outcome for your business. We host open discussions and planning sessions about your future goals and funding requirements so that we can create a long-term plan tailored to your business.
We have access to the best offers from lenders
We have access to various lenders with a choice of loan products. Because we deal with lenders day in and day out, we stay up-to-date with changes in the market and the latest business loans.
We get more than you would if you went through a bank directly
We know how the lenders work and what they are looking for when it comes to their lending appetites. You may be surprised to hear they all have different lending objectives, parameters, and processes; they all operate differently. We will help to structure your proposal, considering the various product types, interest rates and fee structures. And because we stay on top of changes in the lending market, we get a sense of lenders’ attitudes toward a particular industry or sector. If a lender’s policy or funding appetite changes in your industry, we can also help you consider appropriate strategies to ensure it is business as usual.
We offer ongoing support
Our support doesn’t stop once your business loan has been approved. Our commercial finance brokers are here to provide you and your business with ongoing support, meaning we don’t leave you as soon as your loan is approved. We continue working with you to help you plan and achieve your next business goals while constantly monitoring and adjusting your company’s strategy when required.
It's time to get in touch
If you’ve wondered how to get a business loan for your company, the team at Inovayt are here to assist. With extensive knowledge built up from years of experience, our commercial finance brokers are ready to help your business grow.
Are you ready to expand your business? Get in touch with our team of commercial finance broker experts today.
