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Do I need regular income for a business loan?

Do I Need Regular Income For A Business Loan? | Financial Information | Tiger Finance

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If you’re looking at applying for a business loan, you might be wondering if you will need regular income to be approved. Generally, a lender will want to see that you have regular income and that you will be able to meet your repayments on time. However, if you are having difficulties with traditional lenders and meeting their strict criteria, you might try a private lender for your business loan application.

Read on below to find out more about regular income and business loans.

Do I need regular income for a business loan?

When applying for a business loan, generally, a lender will take your income into account. Some lenders may require you to have been trading for 6 to 12 months before they will approve a business loan, however, this may vary. Generally, you will need to be generating enough income to cover your business expenses, and to make your repayments.

What else do lenders consider?

When considering your application for a business loan, a lender may consider:

  • Your time in the industry –Lenders will generally want to know how much experience you have had in your industry. How long your business has been operating will generally have an impact on your application, however, the time period required may vary according to the kind of loan you have applied for.
  • Earnings – In most cases, a lender will take your income and earnings into account when you apply. Depending on the type of business loan that you apply for, you may not need to be earning as much as compared to another loan.
  • Your credit score – As well as your credit history, a lender will check your credit score during your application. Depending on your lender, you may need a good credit score for your application to be approved.
  • Company history –Your company’s debt records, history and earnings may also be examined by your lender. They may look for any unpaid defaults in your company’s name.

If you’re struggling with proving that you have a regular income, or are finding it difficult to supply all of the documents that traditional lenders usually need, you might consider using a private lender for your business loan.

Business woman discussing a loan | Financial Information | Tiger Finance

What are the benefits of private lenders?

There are many benefits to applying for a loan with a private lender. Generally, most private lenders have a much easier application process compared to those of traditional lenders. It’s possible that a private lender won’t require as much documentation during your application, and can have you approved faster than a bank will.

Applying and getting approved for a private loan can be quite easy overall. One of the benefits of a private loan is that generally, there are faster approval times. This is usually because there is a lot less paperwork compared to a traditional loan, which may take weeks to be approved.

Many private lenders offer far more flexible loans, which can be tailored made to suit your needs. This means that with a private lender, you have less chance of being stuck in a one size fits all loan.

You may also find that it’s easier to be approved for a private loan if you have a bad credit score. Many private lenders offer specialised services and loans to those with impaired credit history.

Some other benefits of private loans are:

  • Quicker settlement – If you happen to require a loan quickly, the approval process for private lending is faster, and usually involves less paperwork than those of a bank.
  • Specialised loans – Private lenders are often able to cater to those after a wide range of loans while having far less strict rules than traditional funding. This may be ideal for those seeking short term finance, or those in need of funding quickly.
  • All credit histories – Having a good credit history may not be necessary to gain approval from a private lender. Many people seeking finance are rejected by banks for having less than ideal credit history go on to successfully apply for a loan with a private lender.
  • Fewer requirements – Banks will generally want excellent credit, a good repayment history, income requirements, and proof of income when approving your loan. Private lenders often have fewer requirements, making the whole process much easier.
  • Flexible payment terms – Private lenders may be able to offer you a more flexible rate compared to a bank.

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 and talk to one of our loan specialists today for your free initial consultation.

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