[adning id=”12070″]

[adning id=”12070″]

How you can apply for an SME loan

According to the Australian Bureau of Statistics, new businesses borrowed $346.9 million in 2018, with 22% of that being Small-Medium Enterprises (SMEs).

The most common reason for the loans is for working capital, paying salaries and bills. Expansion, paying off other debt, and buying stock or equipment were the other major reasons.

What is a business loan?  

ABF media

A business loan is an agreement between a business owner and a bank or private lender where money is received for future repayment of the principal with interest. Business loans are specifically intended for business purposes.

What do you need to apply for a business loan?  

As a small business owner applying for a loan, you have several places you can look at when seeking a small business loan. Online lenders, banks, peer-to-peer lending sites, and lenders backed by the SBA are just a few of the types of lenders that provide loans.

 

When you apply for any type of loan, here is some of the documentation a bank or other lender may want to see:

  • Information about how the loan will be used

  • Business plan: A plan that describes all facets of your business

  • Personal background and financial statement: While a lender will likely pull a business credit report, they may also take a look at a personal credit report if you have very little borrowing history.

  • Loan application history

  • Business financial statements which might include a profit and loss statement, balance sheet, and projected financial statements, for example.

  • Income tax returns

  • Resumes: A loan application will include a professional resume as a way to give the lender context for the experience you have in the industry you are operating your business in.

  • Legal documents: These might include documents like a business certificate or license, commercial leases, and contracts you may have with third parties, for example.

By Lucy Ng, SBC Writer

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email
Share on print
Print

Leave a Comment

Your email address will not be published. Required fields are marked *

SUBSCRIBE FREE
SME NEWS BRIEFS

Get breaking news delivered
  • This field is for validation purposes and should be left unchanged.

RECEIVE GOVT GRANT OF $10K to $250K*.

Austrade Approved Business Events
AVAILABLE NOW APPLY BEFORE 30th MARCH 2021 (Condition apply)

  • ABF Events are approved and listed below have been certified by Austrade on the Schedule of Approved Business Events.
  • This allows exhibitors, sponsors, delegates and partners to participate in the Business Events Grant Program. Note event bookings need to be confirmed ASAP to participate in the grant program
  • The program provides 50% rebate (based on a minimum spend of $20k) for approved items including ABF event-media packages, exhibition stands, corporate function tables, delegate registrations.
  • Govt Grant applications are now open until the 30 March. Please contact ABF to discuss how we can assist, we have experts to assist grant applications.
  • Grant funding will cover up to 50% of eligible expenditure incurred in participating at pre-approved business-to-business events as buyers or sellers during the 2021 calendar year.  All grant applications must be submitted for approval via the following link: https://business.gov.au/grants-and-programs/business-events-grants
  • For further information please see this fact sheet.