Which type of loan for small businesses in NSW?
With so many financing options available to small business owners, it can be difficult to know which type of loan is the most suitable. There are secured and unsecured fixed-term loans, ongoing facilities such as credit lines, overdrafts and business credit cards, as well as alternative funding solutions such as invoice finance, equipment finance and trade finance.
Invoice finance for small businesses
Waddle offers a modern form of invoice finance helping small to medium enterprises overcome cash flow shortages and achieve their full potential.
It is a solution designed to help Australian businesses get ahead. A technology-based solution which syncs with leading cloud accounting platforms to deliver a flexible line of credit that grows as your business does. Unlike traditional debtor finance facilities such as factoring, it is fast, flexible and confidential. Funds can be in your account in days from initial application, you choose which customers you want to borrow money against, use it only when you need it and only pay for what you use. There are also no lock-in contracts, you get to cancel anytime as long as your loan is paid off and there are no unfair fees or charges.
Here’s how to get started. Just click get a quote, answer a few questions about your business and connect your accounting software. If you’re eligible you’ll be taken to Waddle platform where you can see a list of your debtors. Pick the ones you want to finance and we’ll present you with a potential credit limit.
After a seamless application process, you can draw down funds and the money will be in your account within 24 hours. As you raise more invoices in your accounting software, your available balance will increase. As your customers pay their invoices into an account Waddle sets up in your name, your balance is paid off.
Also, tedious admin is a thing of the past with Waddle. No more uploading of invoices or spending hours on reconciling customer payments. Our cloud accounting sync means that data is passed back to your accounting software and all you need to do is match the payments to the invoices, leaving you with more time to focus on running your business.
Other types of loans for small businesses
Which is right for a particular business comes down to what the loan is needed for, how much is required and the specific situation of the company - how long they’ve been trading, the assets they have and their credit history. You need to know whether your business requires a lump sum or an ongoing form of finance.
Different types of business finance are available from different types of financial institutions. Large traditional banks cater to more established businesses with fixed-term loans and lines of credit and overdrafts. Smaller lenders may specialise in more specialised financial products such as debtor finance and supply chain finance, as well as unsecured business loans.
Requirements will vary. It may take longer to apply for a loan with big banks and the lending criteria will be more rigorous, but loan amounts can be higher, terms longer (12 months+) and interest rates and fees more favourable. With non-bank lenders, funds can be available within a matter of days and terms and conditions are more flexible, but this may incur higher rates and fees.
- Read more about online business loans