Looking for a business loan in Sydney?
There are many funding options available to small business owners. The most suitable type of loan will depend on various factors. This includes the loan amount required and the specific needs of the business applying. For example, if they are looking for a lump sum upfront, they may opt for a different type of funding solution than if it is needed for ongoing working capital requirements.
Invoice finance for small businesses
Waddle helps small businesses overcome cash flow problems by extending a line of credit based on outstanding invoices. Using innovative custom-built technology, the Waddle platform saves business owners valuable time by automating many of the processes associated with traditional invoice finance. It does this by seamlessly integrating with leading accountancy platforms like Xero and MYOB.
It works like this. First, you’ll need to connect your accounting software and if you’re eligible for funding you’ll be taken to the Waddle dashboard. Here you can select which of your customers you’d like to borrow against and after you nominate them, you’ll be presented with a credit limit, which is around 80% of your total invoice value.
Once you’ve been approved you can draw down from the platform and the funds will appear in your account the same day. As more invoices are raised in your accounting software the amount you can borrow will increase. Your customers repay the loan by paying the invoices into a bank account Waddle sets up in your name.
With Waddle, you’ll also find that you have much more time to spend focusing on your business as there is far less admin involved compared with traditional invoice finance facilities. You’ll never need to upload another invoice.
Other types of funding
Business finance comes from big banks as well as non-bank business lenders. Interest rates and terms and conditions will vary. Established business banks may offer secured loans, overdrafts or business credit lines, whilst smaller lenders may specialise in unsecured business loans or more specific types of funding such as invoice finance, equipment finance or supply chain finance.
Advantages of smaller lenders include quicker access to funds (as fast as 24 hours) and a more streamlined application process. It may be easier for less established businesses to access a small business loan through a non-bank lender.