Any small business owner will tell you getting the right type of funding at the right time allows you to grow the scale of your operation, develop a larger customer base or change the direction of your business.
The past 12 months have demonstrated this more than ever for many small business operators.
There are many ways CommBank is making it easier for small business customers to access finance – whether that’s making the application process much quicker or helping you determine which finance is best for your business.
So what can you do to better prepare for a business loan application?
1. Business and repayment plan
Clearly articulate your business plan and write it down in black and white. Knowing how much you want, how you will use the loan, and how the repayments will take shape will strengthen your application.
2. Positive business and personal credit score
Identify ways to improve your credit score, such as paying off your credit cards and bills on time. You can visit creditsavvy.com.au to find your credit score.
3. Have clear documentation
Providing clear documentation of your business’ financial history and financial plans will allow the lender to have better visibility of your true financial position, your ability to repay and the positioning for future income.
4. Reduce debts and tax owed
After carefully considering your circumstances, you may want to reduce your loan amount, credit card balance or other outstanding debts.
One important thing to remember is that business loans may not be right for everyone. Other options are available to you based on the circumstances of your business – an overdraft facility or business credit card may also work for you, for example.
And finally, don’t leave it until the last minute. Start the conversation early on to give you and your business the best chance of success.
You can find out more on commbank.com.au/smallbusiness