Getting business loans in Australia can be challenging, especially for small to medium enterprises that haven’t been in business for a long time. The problem of business loans in Australia affects the ability of businesses to grow and increase employment. Here we’ll examine the causes of lack of business loans for SMEs in Australia and ways to overcome the challenge.
Australian businesses needing finance might not be aware that government business loans are an option, as you more often hear about government grants and assistance. But in reality, there are many forms of financial assistance from government agencies, including business loans. These loans are either interest-free or offered for low-interest rates.
Faced with stricter borrowing requirements from banks, more small to medium enterprises are considering all the options. One of these is ‘going public’ with an initial public offering (IPO). In Australia, there are around 2,400 publicly listed companies. Although you often hear about the large companies of the ASX 200 or ASX 500, you don’t have to be a large multinational business to get listed.
If you have done any research about starting a business or getting investment for an existing business, you’ve probably heard about angel investors. If you don’t know what an angel investor does, we’ll answer your questions here.
You probably have heard of bridging loans used for buying and selling residential property. For example, if you buy a property to live in before selling your existing home, a bridging loan (also called bridge loan) can be helpful. In this case, the bridging loan is short-term finance that you will repay as soon as you sell your home.
In business, growing revenue and profit is usually seen as something positive. But there is a downside to growth called overtrading. This occurs when a business expands quickly and does not have the finance in place to fund growth. The result is a lack of working capital to cover day-to-day expenses while sales are growing.
Cash flow is a constant challenge for many small to medium businesses. There are many reasons why businesses run into a cash flow crunch – it could be slow debt collection, bad debt, seasonal sales fluctuations, overinvestment in production capacity, or too much stock. Whatever the cause, a cash flow crunch can be a threat to business survival. Here are a few things business owners can do to overcome a cash flow crunch.
Government grants for small business are often overlooked as a way to finance and grow a small business. In Australia, the Commonwealth and state governments offer a diverse range of government grants for companies of all sizes. Here we’ll look at some of the types of government grants and other assistance offered for a range of scenarios.
If you are running a growing business, access to funds can be a challenge – especially if you don’t have property you can use as collateral. Fortunately, there’s a range of unsecured business loans in Australia that you can choose from. If you need funds to grow your business, here are some unsecured business loan options available.
The internet has broken down barriers and made it possible for people to connect in new ways. One of these is peer-to-peer lending, also called marketplace lending. So what is it? Simply put, peer-to-peer lending matches investors with people looking to borrow money. Using an online platform, peer-to-peer lending makes it possible to bypass traditional lenders – such as banks, credit unions and building societies – by connecting lenders and borrowers.
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