Is an instant business loan what you need right now? Whether you need it for cash shortfalls due to unpaid invoices; for equipment; or even for a personal reason, it is important to find the right one for you. It can definitely help with your immediate business needs, whether it be operating expenses, marketing, or business expansion. You may also need a instant business loan for your accounts payable or just to even out your cash flow.
Whether you’ve just started building up your business or operating it for decades, lenders know that speed and practicality are key factors in your success. That’s why they engineered instant solutions to cater to your needs and help you get back on track.
Different instant business loans in the market
The following are the different types of instant business loans, including their features:
- Small business loans — These credits are intended for small businesses to get off the ground or for taking care of the expenses in the existing one. Secured loan and short-term loan can be considered as small business loan.
- Self-employed personal loans — This type of loan is usually more expensive than a traditional loan. You can apply for a low documentation loan if you cannot meet the full documentation requirements, which includes tax returns and financial statements.
- Cosigner loans — This will allow you to apply with another person who has stronger qualifications to meet the eligibility requirements. Putting up a collateral as security for the loan can be a requirement depending on your lender.
- Short-term finance — Also known as working capital financing, short-term finance is normally needed for uneven cash flow and the seasonal pattern of business. This type of loan is also used to finance all types of inventory and accounts receivables.
- Truck and equipment financing — You can get truck and equipment financing if you need to add, replace, or upgrade your existing fleet of hauling units. This type of loan can be used in purchasing your own business truck for faster delivery of goods. Usually, lenders are able to secure truck and equipment finance against the asset being purchased.
- Car loans — Car loans can come in different forms, such as standard car loan (bank, credit union, or standalone lender), commercial hire purchase, finance lease, novated lease, operating lease, and chattel mortgage. These loans are designed for businessmen and self-employed. The proceeds from a car loan can be utilised to buy a vehicle. The vehicle you are purchasing can be used to guarantee the loan. You can borrow between $1,000 and $100,000 with loan terms that can extend up to 7 years.
Required documents to get instant business loans
Aside from Business Activity Statements (BAS) and a signed Borrower Certificate of Income Declaration Form, there are other required documents to be approved for a business loan. They are the following:
- Company information. Be prepared to provide information such as your company’s Australian Business Number (ABN), address, etc. Lenders may verify that your ABN has been registered for more than 2 years, as well as registered for Goods and Services Tax (GST). It must be ensured that your business is profitable, hence the GST requirement.
- Tax returns. Your full personal and/or company tax returns (last 2 years) may help to prove any income you declare on your application. Keep your tax return records up to date. Do this by reconciling daily sales to make sure all sales are accounted for. Keep accurate records of business purchases, cash payments, and drawings. This can easily separate your business finances from your personal finances.
- Notice of Assessment. Prepare your latest Notice of Assessment (NOA) from the Australian Taxation Office (ATO). NOA shows tax information such as the amount of income tax you owe(d) on your taxable income. Other details are included, such as the amount of credit you have for paying the tax during the income year.
- Identification. This should be enough to pass the 100 point check. The 100 point check is a personal identification system adopted by the Australian Government to combat financial transaction fraud by individuals and companies. Depending on the lender, your proof of identification may include your Australian driver’s license, passport, birth certificate, or your proof of age card. You can scan your ID and attach the digital file to your loan application or fax over a copy of your ID to the lender.
- Financial statements. These may include any profit/loss statements which shows how the net income is arrived at over a stated period. These will also support the income that you will declare.
- Proof of income from rental. You can declare any income from rental properties you own together with the copies of your executed lease agreements or real estate statements.
- Bank statements. This includes statements showing your savings and business transactions. Lenders will want a 6-month bank statement to confirm the genuine pattern of your savings. It may also include statements showing any other outstanding loans or credit cards you have.
Financial institutions, such as Cigno Business Solutions, might require a business to possess an ABN or Australian Company Number (ACN), operates for at least 6 months; and generates a $5,000 monthly revenue.
Lenders will require information on your business financial history. You should prepare a convincing and detailed business plan which should include cash flow forecast and a profit and loss budget. Present your business to lenders in a favourable manner by understanding what they look for and what they consider risky.