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Must-ask questions before getting a business loan
To help find funds that fit your business, ask yourself these questions.
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Whether you've been in business for a while, or are just starting out, a business loan is something you may be considering.
The right business loan can help run and grow your business – but before you start an application, there are some important things to consider.
Here are some questions about business loans to ask yourself first.
How quickly do I need the funds?
The speed of the loan approval process varies based on the lender and loan type. Depending on the purpose, you may need extra capital sooner rather than later.
While a short-term loan can provide a quicker boost than a long-term finance solution, it may not be the right option for your business needs.
Do I want a short or long-term loan?
The purpose of your loan will likely determine the length of your loan term, too. For example, securing funding to purchase inventory is different from financing new premises.
With a long-term loan, you receive the funds upfront and make regular repayments with interest. A short-term business loan is similar, but with a shorter repayment schedule.
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Could a cash flow loan be the boost your business needs to grow?
What does my credit profile look like?
Lenders typically review your personal and business credit score when assessing your business loan application. So, it’s important to understand your position.
If your credit score is low, it could be challenging to secure a business loan. Fortunately, flexible lenders like Liberty will look beyond your credit history for solutions to help move your business forward.
Do I need a business loan broker?
A business loan broker specialises in tailoring finance solutions for business owners and self-employed borrowers.
They can help you find a suitable business loan solution and handle the paperwork for you, so you can focus on your business.
Do you have questions for a lending expert? Your local Liberty Adviser can help you explore which business loans may suit you and provide the answers you need.
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