The most recent SME Growth Index discovered that one in five small businesses are experiencing cash flow issues due to business loan rejection. In fact, a lack of access to funding was the number one barrier to growth.
However, some lenders like Liberty are being proactive in helping small businesses secure finance. Here are some options to consider if you're in the market for a business loan.
Before looking for a loan, you'll want to check your business accounts are in order. Lenders will want to review your business activity statements, previous tax returns as well as understand your overall asset and liability position.
Check your business bank statements carefully too – your lender will.
Another way to help get your loan application across the line is to check your business credit history is clean.
A question of security
Most lenders will seek mortgage security on your home for your business loan. This secured loan can allow you to borrow against your property’s value.
But if you don’t have property, or don’t have equity in your property, there are still options. Some free-thinking lenders, like Liberty, can assess your eligibility on the strength of your business instead.
If you are running your own business a low-doc loan might also be a good option for you. These secured loans cater for borrowers who may not have all the paperwork that traditional lenders require but can still prove their income and creditworthiness.
To learn more about what the best business loan option might be for you, contact a Liberty Adviser today.