If you’ve taken out a long-term business loan, chances are you’ve also got long-term plans for your business.
Whether you’re an established business looking to grow, or a start-up with a vision you’re ready to bring to life, money is the one thing every business needs. However, borrowing from the big banks and other major lenders isn’t always an option for many small to medium-sized businesses. There are many reasons why and that’s where private lenders step in. And while we’ve already discussed how a long-term business loan can help your business grow, we wanted to dig a little deeper and look at a few of the ways you can put your long-term business loan funds to good use.
What’s a long-term business loan?
We define a long-term business loan as any loan being repaid within 12 to 36 months. How much you’ll repay monthly will depend on the loan amount and loan term.
Why would I borrow from a private lender?
Traditional lenders are generally weighed down by long, slow processes that may not suit your business. They may also ask for the kind of documentation your business can’t provide or, if they do review your financials, you don’t meet their strict lending criteria.
Borrowing from a private lender is different. For a start, it’s secured financing. This means you’re free from the burden of providing endlessly detailed financial records which slow down the application process. This freedom also means Strive can turn your loan application around fast and customise repayments and loan terms to further suit your needs. Once your loan has been funded, what are some ways to put that money to good use.
Expand your business
Is your business ready to grow but you lack the funds to make it happen? Are you ready to expand to another location, but you need to buy or lease the commercial space and hire more staff. And the new staff all need office furniture and wages and superannuation. Or you’re a tradie and need another set of hands to keep up with demand. You have the choice to stay as you are and say no to new business, or you expand and grow.
Large business expense
A large, unexpected problem or issue rears its head and you have to deal with it. Now. The roof is leaking and your builder says you need a new one. Or your truck breaks down and your mechanic tells you it’s on its last legs.
Investment opportunity
You need to spend money to make money and that’s never truer than when it comes to investing in your own business. Buying new machinery, office space, vehicles and equipment need large cash outlays. And investing in the digital side of your business, building and maintaining your website, implementing social media, and marketing your business online, this all costs money.
Buy a commercial property
You’re a bricks and mortar operation ready to set up your very first place of business. Or you’re already established and ready to open a second (or third or fourth) location. Buying or leasing a commercial property doesn’t come cheap but, if your business is to grow, you’re going to need the funds to expand and move forward. While these are just examples, they show the many ways a business can benefit from a large cash injection.
We offer business loans from as little as $20,000 all the way up to $3,000,000 so there’s no plan, no dream, and no business idea beyond your reach. When you need fast finance, you need Strive. Our long-term business loans business bridging loans can help bring your vision to life. Get in touch with us today!
Cash is king. Nowhere more so than in small business – it enables the purchasing of stock, paying of staff and contractors or even paying debts. It also enables small businesses to invest in new opportunities or innovate – but cash for these businesses can be a little bit chicken and egg. Which comes first?
On average 50% of new businesses fail within the first five years. In their time of need, many small businesses will turn to brokers like you for guidance – and your help could get them out of a tight spot. In fact super fast, short-term business finance did just that for one of our clients.