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Choosing the right lending option for your business

Choosing the right lending option for your business

Your business might need some extra cash from time to time. With many lending options to choose from, it’s important to choose one that will meet your needs.

Here are some of the most common reasons businesses seek extra funds, with lending options to match.

Managing cash flow

You might be making profitable sales, but when you have significant payments due you can still end up with a temporary cash flow gap that can put a real strain on your business.

For immediate purchases or unexpected business expenses, a Business Credit Card is a simple and convenient solution for those looking for access to credit while still keeping their personal and business expenses separate. Depending on the credit type, you can reward yourself by earning points with every dollar you spend or you can enjoy the flexibility of managing your cash flow by getting up to 55 days interest free on business purchases.

For larger or more frequent seasonal gaps, a Business Overdraft might be the answer. An overdraft gives you extra cash on tap when you need it, simply by withdrawing extra funds from the same business account you use for your everyday banking.

Managing stock

With the festive season just two months away, you may have already started thinking about how you’ll buy extra stock for the peak holiday season demands.

For shorter-term or smaller purchases, a Business Credit Card or Business Overdraft may be all you need but if you run a seasonal business where you often need to invest hefty amounts in building stock levels before each peak sales season, a Business Line of Credit could be a more affordable option.

A line of credit combines the flexibility of an overdraft with the long-term access and lower interest rates of a business loan. You can draw down and repay funds as you need them, while only paying interest on the amount you use. Because your line of credit stays open over the long term, you won’t need to re-apply every time you need to restock those empty shelves — so you can save both time and money.

Growing your business

Just as borrowing to buy property has been a successful strategy for millions of Australian home-owners, borrowing to re-invest back into your business could help it grow even further. 

For long-term investments, a BetterBusiness Loan can be a good solution. With terms from one to 30 years and flexible loan structuring options, it allows you to invest in extra capacity now while keeping borrowing costs under control.

If you’re looking to buy new business vehicles or equipment, car and equipment finance could be the way to go. It gives you a range of tax-effective options tailored to your individual business needs. And because your finance is secured by the asset you’re buying, you don’t need to tie up other business or personal property as security.

Still not sure which lending solution you need? Use our business loan selector tool to find the right option in minutes.

Things you should know: This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Applications are subject to credit approval.