Business Growth: Why You Need A Finance Loan

The humble finance loan serves as the backbone for many entrepreneurial ventures. 

Finance loans can be a lifeline for small businesses. By facilitating critical investments in operational costs like technology, staffing, and expansion, they help owners navigate business growth and challenges confidently and strategically.

OnDeck understands the challenges small business owners face and the opportunities that lie ahead, which is why we've tailored our offerings to suit the dynamic Australian business landscape, providing you with the flexibility to plan and grow.

Before you dive into business finance loans, however, there are a few points you should consider.

Frequently Asked Questions (FAQ)

What factors influence loan approval decisions?

Several general factors can impact your chances of approval for a new business loan, and these factors may differ from the criteria you’ll find for secured or unsecured personal loans.

Among these factors are your business credit score, your business's cash flow and financial records, and your business’s monthly average revenue. If you’re looking beyond unsecured business loans and opting for secured credit loans instead, then your offered collateral or security on the finance loan will impact your loan application’s assessment as well.

Some lenders may consider the purpose of the finance loan and the detailed business plan presented to evaluate the business's feasibility. At OnDeck, we only require six months of recent business bank statements as a financial documentary requirement for our Lightning Loans®.

To qualify for OnDeck’s Lightning Loans, your business must have at least a year under its belt, meet our minimum annual turnover, have no bankruptcies (prior or recent), and meet our minimum required business credit score. 

For those who need larger loans, we have our Lightning Loans Plus loans. Here, we’ll need to assess the accountant-prepared financials of your business from the past twelve months, along with the standard business bank statements from the past six months.

For more information on OnDeck’s loan eligibility criteria, feel free to reach out to one of our loan specialists. We’ll gladly answer any questions you may have.

What role does a business plan play in securing a loan?

A business plan outlines a company's objectives and its strategies for achieving them, as well as market analysis, financial projections, and operations. A business plan can guide decision-making, secure funding, and track a company's progress over time.

Business plans can be key to applying for an unsecured business loan or secured finance loan by demonstrating to lenders your company's viability, financial projections, and strategic direction. It acts as a roadmap for how the loan will be used to achieve growth and ensure profitability, which in turn can reassure lenders of your ability to repay your ABN loan should you be approved.

Additionally, a well-crafted business plan enhances your credibility and likelihood of loan approval by demonstrating your understanding of your market and the extent of your operational capabilities.

Sometimes, you need guidance in refining your application, especially if it’s your first time applying for a finance loan for your business. At OnDeck, we do not require you to submit a business plan when you apply, though we recommend having one.

When you apply, we’ll pair you with an Australia-based loan specialist to ensure personalised support throughout the application process. This hands-on approach streamlines the application process so that the experience is smooth, efficient, and uniquely tailored to your needs.

How do I find the best lender for my business loan needs?

If you’re looking for the ideal finance loan or the best loan rates for your business, start with a loan comparison by researching criteria like loan repayment terms, interest rates, and eligibility requirements from your chosen lenders.

You can also consult reviews and testimonials from other businesses, as well as financial advisors and industry peers, to ensure the lender meets your specific business needs.

Credit score plays an important role in business lending as well, whether you’re seeking financial assistance, loan refinancing, or greater loan options in general, and your business’s credit health could greatly impact your opportunities for new business loans.

If you’re uncertain about your business credit score, then you’ll want to consider finance loan companies that specialise in small business financing, such as OnDeck.

Not only do we offer access to quick business loans to both sole traders and small businesses, but we also have practical finance loan services like our ‘Know Your Score’ tool, which can offer you insight into your business credit score and how it impacts your business health.

Using your business’ unique credit score and thousands of other data points, we’ll show you your Koala Score™, which will also help us determine how much we can lend you for your finance loan offer.

Empowering Australian Small Businesses with OnDeck

At OnDeck, we're your partner in progress for small businesses across Australia. With a commitment to providing fast, flexible funding, our small business loans can cater to your business's unique financial needs and provide you with funds quickly, so that you're always ready to take the next step forward.

With our 'Know Your Score’ tool and our Koala Score, we can also offer a more accurate assessment of your business’s credit health and potentially offer greater finance loan opportunities than you might find elsewhere.

Join the community of thriving Australian small businesses that we’ve helped propel forward with our loans. Apply for an OnDeck finance loan today.

This article is 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. OnDeck is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how this information relates to your unique circumstances. OnDeck is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly by the use of this website.