What is a sole trader?
A sole trader owns and controls all aspects of a business himself. He’s responsible for all executive decisions, including (but not limited to) the administration of profits and the handling of resources.
When signing business deals, sole traders deal with less bureaucracy. Also, all the earnings go straight to them since they have no staff to pay.
The Australian Taxation Office (ATO) doesn’t have a registry of sole traders, so they don’t get to pay most of the administrative fees charged to branded businesses.
How to qualify for sole trader funding
With the right loan, a sole trader can finance a startup or purchase an existing business. The funds can be used to:
- buy more equipment to keep the technology of operation up-to-date
- restock inventory
- buy stocks in a business venture
- expand the business.
Usually, a sole trader looking for loans from a regular bank needs to come prepared with financial records, a good credit history, and tax returns complying with the banks’ requirements.
Some commercial lenders have revised their application process for an easy-to-gain and fast approval. Unlike banks, they don’t ask for much documentation and have a shorter approval time.
To qualify for a loan under this process, a sole trader needs to fill the application form online — the pre-approval time takes less than 5 minutes.
Once the decision is made, a specialist will contact the sole trader and ask for a few basic documents for verification. Lastly, the contract should be signed and the funds will be transferred directly into the sole trader’s account.
Small business loans in Australia
Get help and information on small business loans from Cigno Business Solutions.
CBS makes the process simple with an online application and clear terms & conditions of every loan.
You can apply quickly for a loan that’s tailored to suit your needs.
