Running a business is an exciting time, but it can also be challenging. For many new business owners, securing financing is one of the biggest hurdles. If you’re in this position, you’re not alone. Many small business owners in Australia need financial support to expand and grow their businesses. Fortunately, there are many options available, including unsecured business loans. In this blog post, we’ll provide tips for first-time borrowers who are looking to secure an unsecured business loan.
Know Your Credit Score
Before you apply for a loan, it’s important to know your credit score. This is one of the factors that lenders consider when deciding whether to approve your application. A good credit score can increase your chances of being approved for a loan and getting a favorable interest rate. You can check your credit score for free with OnDeck’s Know Your Score.
Determine Your Business Needs
Before applying for a loan, you should have a clear understanding of your business’s financial needs. Determine how much money you need to borrow and what you need the funds for. Having a solid business plan in place will help you determine your needs and communicate them to lenders.
Take the time to research lenders to find the best fit for your business. Consider the lender’s reputation, interest rates, fees, and loan terms. You may also want to look for lenders who specialize in unsecured business loans.
Gather Your Documents
Lenders will require certain documents to process your loan application. These may include financial statements, tax returns, and other business documents. Gather all the necessary documents ahead of time to speed up the loan application process.
Understand Loan Terms
Make sure you understand the terms of the loan before signing any agreement. This includes the interest rate, fees, and repayment schedule. Ask questions if you’re unsure about any aspect of the loan terms.
Don’t Borrow More Than You Need
While it may be tempting to borrow more money than you need, this can lead to financial trouble down the road. Borrow only what you need and can reasonably pay back.
Make Timely Payments
Once you’ve secured a loan, it’s important to make timely payments. Late payments can damage your credit score and lead to additional fees and penalties. Set up automatic payments if possible to ensure that you don’t miss any payments.
Use the Funds Wisely
Use the loan funds wisely to achieve your business goals. This may include investing in equipment, hiring staff, or launching a new product or service. Make sure that the loan funds are being used in a way that will generate a return on investment.
Build a Relationship with Your Lender
Building a good relationship with your lender can be beneficial in the long run. Communicate openly and honestly with your lender and let them know if you’re experiencing any financial difficulties. This can help you work together to find a solution.
Consider OnDeck’s Unsecured Business Loans
At OnDeck, we offer unsecured business loans designed to help small business owners grow and thrive. Our loans are fast, frictionless, and tailored to your business needs. With loan amounts ranging from $10K to $250K and loan terms of 6 to 24 months, we make it easy for you to get the financing you need. Plus, our loan application process is quick and simple, with funds available in as little as one business day. If you’re looking for an unsecured business loan, consider OnDeck. Apply Here.
In conclusion, securing an unsecured business loan can be a great way for first-time borrowers to get the financing they need to grow their business. By following these tips and considering OnDeck’s unsecured business loans, you can get the funding you need to grow your business.
Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong to or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at May 2023. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.