How do I obtain finance for a small business? It’s a question many business owners ask themselves when they are starting out or when they want to take their business further along the growth and expansion pathway. Unfortunately, it isn’t always easy – especially if the business doesn’t have any equity or doesn’t have several years of trading history.
With Prospa, we offer business finance options that are especially designed with small businesses in mind – to help them grow and to get them through tough spots. As Australia’s #1 online lender to small business we have helped more than 26,000 clients with over $1.4 billion in short term business finance.
Borrow up to $300K with 10 minute application, fast decision and funding possible in 24 hours
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More than 26,000 small businesses have borrowed over $1.4 billion from Prospa so far. Join them.
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Being able to raise finance may be a key part of a business’s plan for strategic growth. A business may need a lump sum to invest in an expansion, or easy and continuous access to funds to support working capital.
Prospa has a small business finance solution for both these scenarios – so talk to us today. What could your business do with some additional finance?
Evelyn Fernandez-Ferrer left her corporate job to study myotherapy and start a physical therapy business. After a successful year, she turned to Prospa for funds to grow the business even further and help her manage cash flow.
How to raise finance for your business is a common dilemma. Fortunately, in Australia we have many types of business finance options available.
Business finance can be divided into two broad groups – debt finance (borrowing money from a lender) and equity finance (receiving money in exchange for part ownership of the business).
When you use debt finance, there are terms and conditions on the loan plus a range of fees and interest rate options. But the advantages of debt financing include that you maintain full control of your business and the interest you pay on the loan may be tax deductible. It can be challenging to get this type of finance if you are starting a business.
Examples of this type of business finance include loans from banks and online lenders (there are many types of business loans in Australia), business credit cards, overdrafts, buy-now-pay-later schemes from finance companies, supplier credit, loans from friends and family, and others.
You might find this article interesting, it’s about why many businesses are turning away from traditional lenders.
Using equity finance can be less risky because you don’t have a debt that needs to be repaid, but you are giving up part ownership of your business to the investors – who may also want to play a part in business decisions.
Various sources of equity include private investors, venture capitalists, your own personal savings, your family or friends, or by publicly listing your business on the stock exchange.
There are other finance options to consider, these include crowdfunding or applying for government assistance through a small business grant.
Prospa offers two SME funding options to help you grow your business or manage cash flow – a business loan and a line of credit. This article discusses the difference between them to help you decide which option might suit your business best. If you have any questions, please get in touch.
Many businesses don’t realise how fast and hassle-free the process of applying for business finance can be these days. Gone are the days of long forms and long waits when you are applying for a business loan. Alternative lenders like Prospa can help you get funds to finance growth or to manage cash flow in a fraction of the time it used to take.
So when it comes to business finance, rather than turning to your personal savings, the equity in your home or using a personal credit card – talk to Prospa about how you can apply for a business loan of up to $300K (or a line of credit) in as little as 10 minutes with funding possible in 24 hours.
If you’re thinking of using your personal finances to fund your business – here’s a great article talking about the advantages of keeping your personal finance separate from your business.
You can borrow money to finance a small business. With Prospa, if your monthly turnover is more than $6,000 and you have over 6 months trading history, you qualify to apply for business finance with us. All you need to apply is an active ABN, your business bank account details, and your driver’s licence – plus some additional financial information if you’re applying for over $150,000. Talk to us today about business finance.