Short term business loans UK -How to get a short-term business loan quickly?

26 Jun

How to get a short-term business loan quickly?

When your business is in its first years of operation, it may seem difficult to use a bank to realize your vision. If you’re wondering how to quickly get a short- term business loan in Australia, here’s a way to improve your chances of success and make things easier and faster. Short-term loans provide businesses with quick working capital. 

Financial documents

Financial documents

First of all, make sure all your documents are in order – as boring as it is, this is the most important part.

Your documentation consists of two parts: your personal information that gives lenders an idea of ​​your personal reliability; and your business information, including forecasts for the future.

Personal information you will need to apply for a business loan in Australia

If you are a director of an Australian company, you will need the following:

  • your tax returns for the last three years 
  • personal bank details and statements for the past year
  • credit card statements for the last year
  • information on all personal loans in progress
  • current assets and liabilities
  • where you worked for the last 3 years
  • where you lived the last 3 years

If you have these documents, you will be well prepared for all the applications you want to create.

You will actually need this information if you are trying to get a home loan, so it is a good idea to keep the documents up to date.

Now, for information about your business, you will need to apply for a commercial loan.

Commercial information you will need to apply for a commercial loan in Australia

Maybe you have to buy inventory, buy equipment or invest in a property. Either way, the formula does not change much and once you have followed the commercial loan application process, you have most of the information to do it again.

  • Certificate of incorporation
  • Bank statements (up to 3 years)
  • Lease contract in progress (if applicable)
  • Audited financial data (or interim financial data if audited accounts are not available)
  • Business tax return (if you have been in business for more than one year)

If you have an agreement with the ATO regarding a tax debt

It is very good! We simply need to get a letter from your accountant explaining the nature and terms of your contract with the Australian Tax Office. Of course, this can have an impact on the quality of the terms lenders are meeting, but it is always worthwhile to assess the desirability of knowing where you are.

Business plan

Business plan

Your numbers show where you have been and who you are. Your business plan shows where you are going.

If you’re not done yet, try following the process outlined in our article on preparing a business plan. At a minimum, the business plan should explain why you want to do what you are proposing (in general, and should highlight where external financing, such as bank credit, comes in), why it is likely to succeed What does this success really look like and when?

The important thing is to stay simple, clear and easily linked to numbers. Banks and lenders will ignore or ignore anything that looks like “waffles” or a too passionate view of the world. They are looking for a rational and lucid business owner who knows their numbers, their operations, their industry and the levers that oppose everything.

When we work with borrower clients, we help them refine their business plans to present their projects in a clear and financially sensitive manner, allowing banks and other lenders to make a decision about their ability to lend you.

Loan result

Loan result

Let’s move on to the most important part: the result!

If you have made an effort to accurately inform all your information, you are at least on the road to getting loan results with minimal feedback and additional information. Hope your chosen bank is satisfied and offers you a feasible loan.

It is not uncommon to get some rejections at the very beginning of your activity. Having a commercial finance broker at your disposal throughout this stage can reduce stress and confusion, as well as the delays you may encounter in trying to deal with each bank individually.

If you want to talk about how to get a commercial loan for your business quickly, we’d be happy to meet you and see if we can help you achieve your business goals. Why not contact our business loan advisors?