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What Business Lenders will Lend Money For
By Phil Trumble
Starting a new business is hard work at the best of times. Growing
an existing business can be even harder. In each situation you need
money to move forward. Some growth opportunities are finite and will
be lost if you don¡¯t act quickly. This is why just waiting to build
up your funds, not matter how strong your cash flow is may be the
wrong move. You can get finance to make sure you get funds quickly
to meet your needs.
Business lenders are versatile and diverse and will lend for a
multitude of reasons. These can categorised into three main areas:
Starting Up
Growing Your Business
Niche Opportunities
Starting Up
Business lenders can be conservative and insist that you provide at
least two years worth of financials before you are eligible for any
kind of finance. However, more lenders are financing start-up
businesses.
In terms of what can be financed in the start-up, you can basically
find finance for:
Equipment
Premises
Vehicles
Inventory
The main reason that these can all be financed is that each category
of asset has an intrinsic value. The means that if the business
fails the finance company can reclaim a large portion of the funding
by liquidating the assets.
If you need start-up funds for other items that have no asset value
then you normally have to put up security to be able to acquire the
loan.
Growing Your Business
Growing your business can be difficult if you try to grow too much
too quickly. This is because expansion is time and money intensive.
If executed incorrectly, it can be expensive. Business lenders
realise this and are wary about expansion plans. However, you can
normally obtain an expansion loan if you have:
A detailed marketing plan
A business plan highlighting your program
Security to offset the loan
By offering to the lender a blueprint of your plans, including
figures, research and market testing then you stand a very good
chance of securing a loan for growth. If you have an asset base
underpinning your application then your approval is likely.
Niche Opportunities
If an opportunity arises that is too good to pass up then business
lenders can give you quick access funds if necessary. A typical
example of a niche opportunity would be when the Olympics came to
Sydney in 2000 there was an opportunity for hoteliers to lease more
hotel space as occupancies were guaranteed to be high. This was an
opportunity that could generate massive income but was only
available for a finite time. Business lenders like this sort of
opportunity as there is little risk for them, especially if you are
low credit risk.
Business lenders are in the business of lending you money. They will
find reasons to lend you money, only you can find reasons to prevent
them.
About the Author
180 Business Loans are an Australian business financier that provides cash flow solutions to businesses experiencing financial difficulties. You can find out more at http://www.180businessloans.com.au
Article Source: http://www.simplysearch4it.com/article/9484.html
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