There’s no doubt about it; the world of business is becoming increasingly competitive, and that makes it difficult for even long-established companies to stay afloat. The population grows year on year, and as each generation leaves education, more and more entrepreneurs start businesses that provide direct competition to yours. Globalisation is taking the world by storm, and it’s seeing many jobs that were previously safe in Australia outsourced to countries that offer cheaper labour. Plus, thanks to the recent global economic crisis, people are much less willing to part with their cash than they previously were.
However, just because running a business is difficult doesn’t mean it’s impossible – you just need to embrace change, advance with the times, and invest in the right areas of your business where profitable improvements can be made. Unfortunately, if you’re currently struggling with finances, investing in your company might be off the cards. If you need some extra cash to give your business a head start, you might think that your only option is to apply for a bank loan. However, there is another way to get the money you desperately need.
Many private lenders offer small business loans to those who need to either pay off debt or invest in their company to achieve growth once again, and for many reasons, it’s actually more beneficial to choose a private lender over a bank. Below, this article takes a look at some of the reasons why contacting a private lender might be your best option, and you’ll soon see that you can invest in your business quicker than you think.
Banks vs. Private Lenders – Which Should You Choose?
Sometimes, it all takes is a cash injection to get your company back on top, but banks won’t always give you the money you need. Here’s why more and more people are choosing to borrow from private lenders:
- You can access more money – Here in Australia, a bank is very unlikely to give you a loan over $50,000, and that might simply not be enough to get your business back on track. Fortunately, private lenders can often lend up to $500,000, and that should be more than enough for you to invest in the right areas of your company.
- You can often get the cash on the same day – Banks require you to fill out form after form and go through check after check before they’ll grant you a loan, and the longer you have to wait, the more money your company will lose. Fortunately, private lenders can often give you the cash the very same day you apply.
- Borrow money regardless of your business’s age – A bank will want to know that you’ve been profitable for at least two years before granting a loan, but that’s not going to help if you’re just starting to get your company off the ground. Private lenders can often lend money to new businesses as well as long-established ones.
Apply for a Loan Today
As long as you find a private lender with a reputation for professionalism, you can get the cash you need to breathe a new lease of life into your company. Plus, you’ll usually be able to negotiate a repayment plan that works for you.