4 minute read
BUSINESS FINANCE SIMPLIFIED: a guide for entrepreneurs
BY LEIGH SHARPE
Securing finance as a business owner can be challenging, but it doesn’t have to be. Over the years, I’ve seen business owners struggle with the complexities of securing finance, especially when purchasing essential assets like vehicles or revenue-generating equipment. I aim to help simplify that process and offer practical solutions that protect your business and assets.
PROTECT PERSONAL PROPERTY WITH MULTIPLE FINANCE SOURCES
Flexibility is vital when it comes to financing. Every business is unique and your finance solution should be, too. Whether you need a specific loan structure to match your cash flow or want to spread risk across multiple lenders to avoid restrictive agreements, flexibility matters. I often advise clients to consider the long-term, not just the immediate need. “It’s about planning ahead,” I tell them. “Finding great rates is only one component when deciding which lender to use - think about where your business will be in a year or two.” Knowing what your future finance needs are helps us to put an effective plan in place and can contribute to which lenders we use for different assets. Instead of relying on a single lender, spreading your financing needs across different institutions can reduce risk and avoid restrictive agreements. This approach helps ensure that your company’s financing doesn’t become overly reliant on one source (i.e. your home). I’ve worked with many clients to avoid using their home as collateral.
Whether it’s a vehicle or machinery, you can use business assets to secure finance and protect your personal property.
HOW A BROKER CAN HELP
Time is another factor that can complicate securing finance. Most small business owners don’t have the luxury of spending days or even weeks filling out applications and gathering documentation. The benefit of working with a broker is that I can liaise directly with your business accountant. There are also low-doc policies available for up to $250,000 with a major bank. It’s all about making it as painless as possible for you.
Rising interest rates are a hot topic, and I understand why. Business owners are understandably concerned about taking on debt at higher rates. But there are ways to manage this. Fixed-rate loans offer predictability, and in some cases, going with a lender specialising in small business finance—even if the rate is slightly higher— can save you time and hassle. As I always tell my clients, it’s not just about chasing the lowest rate. The difference in 0.5 per cent on a $30,000 loan is minimal, especially if it saves you from the headache of dealing with a large bank’s red tape.
A recent client of mine illustrates this perfectly. He needed to purchase new equipment for his business, but traditional lenders made the process cumbersome. After reviewing his situation, we opted for a non-bank lender. While the rate was slightly higher, the process was streamlined and he had the equipment on the worksite within days. It saved him a lot of hassle and the slight difference in monthly payments was worth the convenience.
If there’s one key takeaway from my years in finance, it is that you shouldn’t try to navigate the complexities of securing business finance alone. Lean on experts who know the industry inside out. As a former credit analyst and now finance broker, I bring a unique perspective— having worked on both sides of the table. This gives my clients a distinct advantage when securing finance.
Consider your options if you would like to secure finance for your business—for vehicles, equipment or working capital. The right solution is out there, which could set your business up for long-term success. Reach out for expert advice and let’s find a solution that works for you. Contact Sharpe Finance on 1300 732 994.
