Small business owners are the backbone of any economy, constantly seeking ways to grow and expand their operations. In 2023, utilising business loans can be an effective way to achieve that growth. However, business loans are an under utilised tool by many small business owners – this blog takes out the guess work and explains what business loans are, how they can be used responsibly, and how SMEs should look to make the most of this financial lifeline that's readily available to them.

What are Business Loans?

Historically, small business loans were typically offered by banks and other large financial institutions. In recent times, with the rapid advances in technology and the tightening of banking policy, disruptors and non-bank lenders have emerged, offering alternative business finance options for SMEs. Non-bank lenders can now assist business owners in the day-to-day operations of their business, i.e., provide funds to cover their expenses such as inventory purchase, equipment upgrades, marketing campaigns, and/or working capital.

Business loans also come in different forms, such as Short-Term Loans, Unsecured Loans, Cash Flow Financing, Secured Loans, Revenue-Based Financing, Line of Credit, Business Overdraft and Working Capital Loans.

How do Business Loans work?

Business loans are a type of financing that provides business owners with either a lump-sum payment or credit line. In return for this funding, the business is obligated to repay the borrowed amount over time, along with interest and fees. The repayment schedule may require daily, weekly, or monthly payments, depending on the loan type (and is also dependent on the lender).

Business loans can be classified as either secured or unsecured. Secured loans require collateral, such as real estate, equipment, cash, or investments, that the lender can seize if the borrower fails to repay the loan. On the other hand, unsecured loans do not require collateral, but typically have a higher cost associated with them.

What are the benefits of Business Loans?

One of the biggest benefits of business loans is that they provide access to capital that a business may not have otherwise. This capital can be used to invest in new equipment, expand operations, or hire additional employees. It can also help a business weather economic downturns by providing a financial cushion.

Another advantage of business loans is that they can support businesses who are wanting to build their credit scores. By repaying the loan on time, business owners can demonstrate their ability to manage debt, which can improve their chances of getting approved for additional financing in the future.

What are the requirements to be eligible for a Bizcap Business Loan?

At Bizcap, we believe small businesses should have fast access to the capital they need to grow, even if they don't have the ‘perfect credit score’. We also provide funding to growing businesses that have existing loan facilities and/or are looking for a large loan, fast. Our systematic approach to assessing credit and risk means we really get to understand our customers – as a result, we look at more than just their credit.

From inventory purchases to expanding operations, Bizcap is proud to provide non-asset backed Business Loans from $5,000– $500,000 funded in as little as three hours. We also provide Secured Business Loans up to $4,000,000.

Eligibility criteria

  • You need an active ABN (Australian Business Number).
  • Your business must be trading for at least 5 months.
  • Your business needs to be turning over at least $12,000 per month.

Small business loans can be a valuable tool for business owners looking to grow their operations in 2023. By providing access to capital, helping businesses build their credit scores, and allowing business owners to invest in their operations, business loans can play a crucial role in driving business growth.

We take the stress out of the business loan application process. So, if you’re in need of fast access to cash to grow your business, call us on 1300 922 223.

Alternatively, click here, to apply for a business loan and get the funds deposited into your account, in three hours!