Lend.com.au have written a great article which outlines some of the reasons why businesses should consider unsecured business loans. There are many finance products out there such as invoice financing, so it's important to do your research and identify the best solution for your business needs.
The Christmas Blackout period can bring Australian small businesses to a halt as wage bills take priority and payments begin to dry up.
With everybody looking to preserve the cash they have available, business to business transactions begin to slow down from November through to February, leaving some business owners scrambling or tying themselves up in expensive, short term loans.
Effectively, everyone is sailing down the same river, causing an industry wide shutdown. Everyone is restricting cash out flows and this has a knock on effect industry wide – everyone is chasing everyone else for money, and no-one wants to let go of it for all the same reasons.
"The future of business lending is one without paperwork and automated approvals."
Is the future already here or are lenders just pretending in a bid to lure customers in?
Invoice Factoring has been a staple financing option for companies with slower cash conversion cycles, but there’s a catch.
Though it seems quick and painless, factoring companies often cut deep into profits, taking up to 20% of total sales. Before you factor your invoices, consider the true cost, avoiding shiny headline rates.
Non-Bank lenders can often deliver increased funding limits and speed, critical to growth.
Today there are private individuals as lenders, wholesale funders, pooled investment schemes, peer-to-peer, contributory, subscription based loan funds and even alternatives lenders that have sourced their funds to on-lend from banks.
Topics: Trends & News