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It’s nothing unique to Australia. Business
entrepreneurs in Australia like business entrepreneurs from other countries do
come to a point when they need to look for money to support the financial needs
of the business. And like in other countries, Australia has an industry that
provides the needed assistance to cash-strapped entrepreneurs. The small
business loans industry in Australia has contributed and still contributing to
the innumerable successful businesses in the country.
Small business entrepreneurs in Australia
looking for extra cash to finance their business are offered the option to take
a government grant, small business loan or other forms of financial assistance.
Depending on the purpose for which the required extra funds will be used, all
banks and non-bank financial institutions in the country offer loan facilities
or financial instruments designed to fulfill the cash requirements of the
business.
Small business loans in Australia may be approved for:
- Renovation of business office or plant
- Purchase of equipment, supplies and stocks
- Payment for Training required by the business
- Funding business advertising expenses
- Expanding or growing the existing business
- Any other expenses related to the operation of the business, e.g. salaries and wages, insurance, overhead expenses, fees for permits and licenses, etc.
- Funding for research and development for new products and services
Some businesses may qualify for government
grants. The different government agencies have allocated money to fund programs
or help business with financing needs.
If, however, your business does not qualify for
government grants, you may opt to approach reliable and trustworthy banks or
financial companies to apply for small business loan. Some of the key players
in small business loans industry include:
Financial Institutions
This includes banks, credit unions and building
societies – they all offer an array of finance products under short- or
long-term conditions. Business entrepreneurs in Australia usually approach the
banks and private lending companies when they need additional funds for their
business.
Retailers And Suppliers
If your business requires goods or products
which you purchase from stores, manufacturers, suppliers and
distributors, instead of applying for a loan, you may negotiate with the other
party to provide you with credit facility which basically means that the
business entrepreneur is allowed by the other party to delay payment for the
goods ordered or purchased.
Factor Companies
The type of financial instrument offered by
factor companies is that of purchasing a business’s outstanding invoices at a
discounted rate. It is the factor company that will chase the debtors. For the
surrendered invoices, the factor company will claim for payment when the
invoice matures and becomes due.
Small Business Industry
Small business loans industry in Australia
thrives because there are numerous small businesses that need financial
assistance for many different reasons. The fact that banks and financial
companies continue to offer these services and instruments to small business
entrepreneurs indicate that the business playing field is not only reserved for
large-scale and deep-pocketed businesses.
The availability of loan facilities under
workable terms and conditions have boosted the confidence of many
business-minded Aussies to move forward with their small business projects. The
confidence comes from knowing that they can turn to the banks and financial
companies in the event that their business plan projections don’t match up with
the actual receivables. And so far, a great number of small businesses have
become successful despite going through a phase of financial difficulty. Thanks
to the support given by the small business loan industry, many small businesses
did not have to fold up.
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