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How to get a business loan as a start-up company

Looking at business loans | Financial Information | Tiger Finance

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If you’re thinking of applying for funding for your start-up business, look no further. It can be confusing and difficult to find out exactly what you need, let alone how to make sure you are actually applying for the right loan. Many lenders offer loans to start-up companies, and while every lender is different, most will need similar documentation to a business loan for approval. Getting a loan for your start-up company isn’t difficult once you know what you’ll need to provide, and how to do it.

If you’re wondering how to get a business loan as a start-up company, read on below to find out more.

What is a start-up business?

Start-ups are generally a type of fast-growing business that is in the process of developing their product. These companies can be sole traders, partnerships or organisations with a product that is usually in high demand. Despite some similarities, a start-up is different to a small business in that they are designed for rapid growth, whereas a small business is usually marked by steady growth.

What might you need to get a business loan as a start-up company

Business partners choosing a business loan | Financial Information | Tiger Finance

Start-up companies often have rapid growth early on, but they can face the same financing needs as other businesses. Start-ups may need funding to:

  • Product development – This is one of the most common funding needs not only for start-ups, but for businesses in general. Developing the initial business idea into a physical product can be expensive, and generally happens at a time before the business has started making money.
  • Operational expenses –Businesses often need to hire staff, lease business space and pay general costs, and start-ups are no exception. These costs require funds, and may come at a time before the business is even off the ground.
  • Marketing costs –In order to sell your product to a wide customer base, marketing is often necessary. Whether it’s through social media or using an advertising service, funding is generally needed to get your product out there.
  • Business expansion –When the time comes, you may need funds to expand your business, whether it be by hiring more staff, a bigger space, or bringing in more products to sell. In some cases, it might be an option to use funds from a loan to expand rather than using profits from the business itself.

How hard is it to get a business loan?

Discussing benefits of a business loan | Financial Information | Tiger Finance

It can be harder to qualify for a business loan than any other type of loan, because it’s much more difficult for your lender to get an understanding of your repayment capacity. While individuals usually have fairly consistent income and spending habits, business finance can fluctuate month to month.

Because of this, you’ll have to convince your lender that you can pay back a business loan, which usually includes supplying your lender with profit and loss statements, and other proof of your ability to repay the loan.

Many lenders do offer loans especially aimed at start-up businesses, with the purpose of helping your business to reach its full potential.

Unlike regular loans, lenders will often require more documentation for a business loan application. You may need to have the following documents in order to apply for your loan:

Personal identification – Such as a driver’s licence or a passport

  • Business verification – You will need to be able to prove your ownership of the business
  • Financial history – Your lender will generally always want to see how strong both your personal and business finances are. They may need to see bank statements, sales records, and other financial documentation before they can approve your loan.

If you have a new business or a start-up, your lender may need you to provide some cash flow projections and a lease agreement to prove that your business is viable, and has a firm place to operate out of in order to grow.  

Before you begin your application, it is always a good idea to double-check with your lender to find out exactly what you need to apply. That way, you won’t be scrambling around last minute trying to find documents. Every lender is different, and every application process may vary depending on your lender.

Where does Tiger Finance come in?

With Tiger Finance, we can help to get you a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved.

We have helped countless Australians with both good and bad credit ratings to be funded for their business. We understand that lending criteria from other lenders are too strict, and can stop you from achieving your goals. That is wrong, and it should not hold you back.

How we can help

Our finance specialists can help you find the right business loan for your project. Business loans are a complicated topic, but we will find a loan that makes your dream project that much easier.

If you are one of the many Australians finding getting a business loan difficult, Tiger Finance can make the process simple and pain-free. call us today for your free initial consultation. 

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