Tips for Financing your business needs

There are a number of finance options available for small business now including a lot of “new economy” style digital lenders promoting easy business finance. This makes money easy to get, but it can also be money that’s hard to pay back.

Our key tips for financing your business:

• Don’t use the tax office as a bank – having tax debts either on instalments or completely unpaid are a red flag to many lenders. If you can keep on top of your tax liabilities, you’ll be able to access better, lower cost finance when you really need it
• The easy money, weekly repayment lenders are out in force. These guys can be good to help with quick loan funding, but be beware! Loan repayment terms are usually short. Interest rates can be extortionate. These guys are ok for short term funding with quick clearance (eg through selling stock or assets) but if your loan is for capital items, you could just as easily find longer term, lower cost solutions. One of the big traps with short term lenders is that their repayment schedules are so short, you are constantly going back to the well and can never get on top of your cashflow
• Big assets – whether its property, plant, equipment or just making a big outlay for future work (taking on a new employee/marketing/product development/business acquisition), funding this sort of stuff from cashflow can leave you short when unexpected bills roll in, a client doesn’t pay or some other shock to your business occurs. Borrowing on term debt for the useful life of the asset is a much safer and surer option. Repayments can be structured to suit both the asset life and your cash flow so you can pay the loan down faster with no penalty or take your sweet time, maximise your tax deductions and leave cash in the bank for your normal business trade

We are business lenders located in Coffs Harbour on the Mid North Coast. We offer a no obligation opportunity to work through your business capital plans, work out some loan structures that will suit your needs and then work with our lending panel to find the most appropriate solution for your needs.

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