Small businesses, in order to grow, might want to consider applying for business loans. However, when you are still growing, and your business is small, funding tends to be more challenging to secure. This is why knowing the easiest business loans to get approved for is crucial.
Several easy business loans can be suitable based on your small business’s needs and requirements. Keep reading for the top business loans to apply for.
Why Get An Easy Business Loan?
Business loans are short-term funding options that give businesses fast access to needed cash flow. A loan provides quick access to a lump sum of cash for covering larger expenses.
Small businesses may use the borrowed funds for various purposes, such as dealing with unexpected expenses, purchasing equipment, training new staff, etc. You could scale up your business and expand operations, either way, you can choose to use these loans.
While there are various business loans out there, not all are accessible to small businesses. That’s why many opt for easy business loans. While other loan options might have their perks, easy business loans typically come with flexible qualification criteria and fast funding. Plus, they generally don’t require a top-tier credit score.
Business loans usually provide the borrowing business with an agreed-upon repayment schedule. You may choose a lender that will provide you with a repayment plan that aligns with your requirements.
However, it is vital to be careful when comparing business loans and double-check the terms offered. Some lenders may tack on hidden fees to the business loans they offer.
Business loans in Australia typically have interest rates starting from around 7.50% to 15%, so you want to avoid acquiring any hidden fees.
How Business Loans Work
Business loans give you access to money that helps you fund your business’s daily operations or acquire assets. Business loans offer you a lump sum of funds or an ongoing line of credit.
The most common reasons small businesses in Australia apply for business loans are generally the following:
- To purchase vehicles or transport
- Fund day-to-day operations
- Hiring and training new staff
- To purchase inventory (machinery or equipment)
The Easiest Business Loans To Get Approved For
Some of the easiest loans that you can apply for and get approved for are:
- Low-interest loans
- Loans with no annual revenue requirement
- Equipment loans for small businesses
- Loans with no credit check
- Short-term lines of credit
Low-interest business loans
Small business loans can have high interest rates, but that does not mean you must sacrifice your business’s mission to acquire funding. Instead, with the rise of online lending platforms, plenty of lenders usually offer low-interest business loans.
If you apply for a low-interest business loan, you may expect relatively low interest rates for borrowers not meeting traditional eligibility criteria.
On the plus side, you may get approved for your loan the same day you apply without meeting a minimum credit score requirement.
The application process is straightforward. All you might need to do is fill out an application and provide information regarding your business revenue and expenses.
Loans with no annual revenue requirement
Most easy business loans have revenue requirements, posing a challenge for small businesses dealing with frequent seasonal fluctuations. The good news is that in Australia, some lenders may offer loans with a minimum annual revenue requirement.
What sets these lenders apart is the absence of strict credit score requirements. Some don’t even have credit score requirements. However, it is important to note these lenders usually cap their loans at lower amounts. This is because of the risks the lenders take by providing such loans.
Equipment loans for small businesses
You can try applying for an equipment loan if you need funds to purchase a tangible asset for business purposes. Equipment loans for small businesses can allow you to finance the full equipment purchase with the loan funds.
This means if your small business gets approved for an equipment loan, you will not need to pay any out-of-pocket cash for any equipment. Various financing sizes are available depending on how much the equipment you need costs.
For example, you may be able to get approved for as little as $5,000. When you apply for this type of loan, you will need to provide some information about the equipment or vehicle you intend to purchase.
Loans with no credit check
Unlike traditional loans that require reams of paperwork, have a long approval process, and require a good credit score, loans with no credit check are typically considered a better alternative for small businesses.
Credit checks can sometimes pose an obstacle in the way of small businesses acquiring necessary funding. That’s why many might opt for small business loans with no credit check. With minimal borrowing criteria and without the hassle of paperwork or a long approval process, you could get access to cash fast. Instead of looking into your business’s credit history, these lenders look at other factors, like your revenue.
Short-term lines of credit
Short-term lines of credit are the easiest type of business loan you may get approved for. Often, when small businesses apply for a line of credit, they could gain access to the funds within minutes once approved.
You may draw up to the loan limit with a short-term line of credit. Moreover, depending on your line of credit terms, you will have 12, 18, or 24 months to repay it.
Considerations When Comparing Easy Business Loans
Before you apply for a small business loan, take into account the following considerations:
- Compare and research different lenders and the interest rates they offer
- Evaluate why your business needs a loan and how much money you require
- Evaluate how much you’ll be able to afford in a monthly payment
- See if your business meets each lender’s eligibility criteria
- Check for any additional or hidden fees
- Compare multiple small business loans to ensure you get the best deal
Frequently Asked Questions
What documents do you need to apply for a small business loan?
Most lenders in Australia who offer small business loans typically have more or less the same requirements. As such, you may need to provide the following paperwork when applying for a business loan:
- Financial statements
- Business plan
- Bank statements
- Tax returns
- Accounts receivable and payable
- ICA (Integrated Client Account) details
- ABN
- BSB
How difficult is it to get approved for a loan for your small business?
Generally, as long as you meet the lenders’ criteria, getting approved for a small business loan is relatively easy.
With a wide range of non-traditional lenders, small businesses today tend to have more options when it comes to easy business loans.
Conclusion
Applying for some of the easiest business loans to get approved for can ensure your small business has a continuous cash flow. Some of these loans commonly include low-interest loans, loans with no annual revenue requirement, and equipment loans.
There are also small business loans with no credit checks and short-term lines of credit.
