Business Loan
Looking to scale-up? We can help.
When managed correctly, business loans can offer the cash injection you need for your next phase of growth. Hatcher can help with the preparation, paperwork and number-crunching, so you can expand your business the smart way.
Understanding the basics of a Business Loan
As the name suggests, a business loan is an agreed amount of money that’s lent to your business by a bank or other lending institution. Typically, business loans involve fixed or variable interest rates, and are repaid at a frequency that best suits your financial operations. For example, you may agree to repay your business loan at monthly, quarterly, or even yearly intervals.
Business loans available include overdrafts, advances, finance leases, chattel mortgages, and more. The best way to determine which loan type of loan suits your business is to speak with an expert. At Hatcher, our team can give you the right tools and resources for success, and can even put you in contact with trusted lenders and brokers as required.
What type of collateral is needed
It’s important to note that various types of assets can be used as financial security for your business loan. For example, banks and lenders will typically take into account your business’ cash, commercial properties, or residential properties.
That said, there are some differences between secured loans and unsecured loans. In some cases, you may also wish to consider a business loan guarantor to help secure finance for your future. We can help you determine which of these options is best for your business needs.
What a business loan can be used for
Business loans can help fund expansion to your current operations. For example, you may consider obtaining a loan to acquire another business, to secure a business premises, to invest in new aspects of your business, or to support your current cash flow.
Rest assured that banks and lenders are generally motivated to provide you with a loan. Hatcher can help to make your application as compelling and easy to understand as possible. You’ll need to provide potential banks or lenders with information that demonstrates how the loan will increase your business income, and how your business intends to repay it.
That said, there are some differences between secured loans and unsecured loans. In some cases, you may also wish to consider a business loan guarantor to help secure finance for your future. We can help you determine which of these options is best for your business needs.
Preparing a business loan application
Hatcher can help you to organise and prepare your financial information to present the most compelling case for a bank or lending institution. Together, we will collate key documents that create a picture of your business over the last 2 to 3 years, including:
- Income statements
- Balance sheets
- Financial statements
- Bank account information
- Tax returns
- Operational budgets
In addition, you will need thorough documentation to show the scope of your future business or project plans. In addition to a formal business plan, producing information that relates to growth trends or market forecasts for your industry can present a stronger case to a prospective lender. If you’re not sure where to get started, Hatcher’s got you covered.
FAQs
The short answer is yes. Although in many cases, securing capital (wealth or assets designed for a specific purpose) is the first hurdle that many start-up businesses face. Getting approved for a business loan as a start-up can present its own challenges.
Beyond a traditional business loan, some start-ups may choose to attract angel investors or venture capitalists to support their future goals. Securing venture capital requires a different tactical approach, so it’s worth discussing your options.
Bootstrapping refers to using existing assets that you may have access to as an individual, in order to fund your business objectives. If you’ve been running your business as a side-hustle, there’s a chance you’ve already bootstrapped some business activities. To achieve greater growth, the next step is to secure third-party financing for your business. The good news is that Hatcher is here to support your future goals.
Disclaimer: Hatcher Advisory and its subsidiaries, together with its owners, managers and employees have endeavoured to ensure the information on this website is accurate. However, you must undertake your own research and seek advice from your financial advisor, broker or accountant to ascertain its application to your specific circumstances. We do not take responsibility for any outcomes based on this material.