In Australia, business loans are frequently used by small business owners to purchase new machinery, refinance existing debt and hire more staff. Read on to discover the 3 most common reasons small businesses pursue unsecured business funding.
1) Additional working capital
A key part of small business health is having sufficient working capital to keep operations running – and a key requirement for business growth.
There is a large number of small business owners who obtain external funding in the form of unsecured business loans to supplement when cash flow is tight. Amounts borrowed are highly flexible, meaning loans of this nature can help cover for both short-term requirements and long-term growth plans.
2) Asset purchase
Regardless of the market you’re in, the time eventually comes for almost every business owner to need additional assets in order to grow. While you might have enough capital to pay employees and cover day-to-day costs, expensive items such as new software, computers or machinery can put a strain on business cash flow.
An unsecured business loan can be an excellent means of getting your hands on big-ticket assets. With fixed payments and flexible repayment terms, you can spread the cost over a period that suits your business finances.
3) Funding business growth
If you’ve identified an opportunity for rapid growth, external capital may well be the best way to execute your strategy and capitalise on the opportunity.
If you’re looking for a flexible, affordable loan that doesn’t need to be secured against existing assets, Boss Finance can help. Apply online now, it only takes a few minutes and you could receive funding in as fast as one business day.
Not ready for a business loan, but want help with your cash flow? Download our FREE Cashflow Plan today!