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Business Loans^*

There are a range of business loan products which are available in the market. At iSelect, we’ve partnered with Valiant to make the process of finding a suitable business loan easier for your business. Below are some of the products which Valiant compare from their range of providers: 

• Secured Business loans
• Unsecured Business loans 
• Equipment financing and chattel mortgages 
• Debtor financing 
• Business Overdraft 
• Line of Credit 
• Merchant Cash Advance 
• Commercial Property Loans 

Wondering which product is suitable for your business? That can depend on a range of factors, including whether you’re looking for a working capital loan, or to finance the purchase of an asset. Whatever your requirements, the team at Valiant can help find a loan product that suits you. 

Cash is the lifeblood of any business. Maintaining positive cashflow helps your business make payroll, purchase stock, pay invoices, and continue your operations. A working capital loan product can help you make these regular payments if you’re having cashflow issues, or are just looking for a cash buffer for your business. Working capital loans can include the following products offered by Valiant: 

• Unsecured Business Loans 
• Debtor financing 
• Business Overdraft 
• Line of Credit 
• Merchant Cash Advance

Asset finance relates to lending products which are used to purchase physical assets. This includes machinery, equipment, business vehicles, and commercial property. In many cases, the asset you’re purchasing could be used as collateral for the loan – which is referred to as a ‘secured loan’. With this arrangement, the lender provides cash to finance the asset purchase, and you’re require to pay back the lender, with interest. However, if you default on your loan, then the lender may have the ability to seize the asset. 
 
When it comes to equipment financing, there are various kinds of loan arrangements which you can organise with your lender. These include a Hire-Purchase agreement, or a Lease Agreement. Speak to the team at Valiant today to get a better idea of which loan product is suitable for your small business.

The application process you’re required to go through for your business loan can depend on a range of factors. This can include the particular business loan product, the loan value, any assets that are being used as collateral, the nature and size of your business, and how long you’ve been in operation. At iSelect we’ve partnered with Valiant to make it easier for iSelect customers to compare business loan products from their range of products and lenders. And the best part? You can get started online today.

The short answer is, it depends. There are certainly loan products available to either purchase an existing business, as well as to start a business. It’s likely that the lender will assess things such as your credit worthiness, your professional or trading experience, the nature of the industry you’re looking to enter, and whether you have any other personal or business-related assets which could be used as collateral for your loan. 

Unfortunately, there is no “best” business loan. Finding a product that’s suitable for your business’ financial requirements can vary based on a range of factors. That said, here are some factors worth considering when you’re comparing business loan products: 

• What is the interest rate? And is it fixed or variable? 
• Are there any fees? Such as application fees, ongoing fees, discharge fees, and early repayment fees. 
• How fast can you get it? In terms of both application and processing speed. 
• What is the eligibility criteria? For example, some lenders may only offer certain loans to businesses that meet a strict criteria (such as relating to turnover, and trading history). 
• Flexibility with repayments? Both in terms of frequency and size.  
• Is there a redraw facility? Which could be beneficial for your cash position if you’d like to draw back funds from any additional or early payments you made. 
• The loan term: That is, the fixed contract period in which you must fully repay the loan with interest.

Unfortunately, just like the question above, there is no “cheapest” business loan. Sure, some loans may come with a lower interest rate, but they could also come with other strings attached, such as the requirement to use an asset as collateral. This could mean that the lender could seize this asset if you default on your loan. For this reason, the interest rate is just one thing to consider in your search for a suitable loan.

How fast you can receive approval for your business loan, as well as the actual capital, can depend on a range of factors. This can include the lender or broker you’re working with, the particular loan product and value, the nature of your business and wider industry, and your credit score.  
 
In order to secure financing in the shortest time possible, it can help to anticipate some of the questions a lender or broker may ask or request. This can include: 

• Why you’re looking to take out the loan 
• Financial statements (relating to cash flow and revenue) 
• Asset valuation statements (if you’re using any assets as loan collateral)

There are a range of factors to consider when comparing business loan products in order to find one that’s suitable for your small business. One of the key factors is the interest rate, as this will have a significant impact on how much you’ll have to repay the lender in addition to the loan’s principal. If you think of the interest as the cost of borrowing the money, then it’s good to keep in mind that different lenders will have different costs. That’s why it’s important to compare interest rates from different lenders to ensure you’re getting a good deal. That said, the interest rate is just one loan feature worth considering. Some others include:  

• Whether the interest rate is fixed or variable 
• What your total repayments could be (including interest) over the lifetime of the loan 
• Whether the lender offers a redraw facility, as maintaining a redrew facility could lower your ongoing interest repayments 
• Any contract or administration fees

In short, absolutely. At iSelect we’ve partnered with Valiant to help you easily compare business loan products from their range of products and providers, and see if you can refinance to find a better deal. For example, if you were on a fixed rate business loan, and lenders in the market lower their interest rates, you could remain stuck paying a higher rate of interest than you need to. If this is the case, Valiant could help you compare lenders and see if you can switch to a business loan with a lower fixed rate, or even switch to a variable rate loan, potentially saving you money on repayments. That said, it’s important to factor any break-fees and sign-up fees, as well as other loan features (such as having a redraw facility), into your assessment of whether the new loan makes more financial sense.