Things to Know Before Taking Out a Small Business Loan

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If you own a small business, at some point of time you will require a business loan either to expand or to keep things running smoothly.  There are numerous types of business loans available in to businesses in Melbourne today, which of course come with varying interest rates and repayment options.

Even though your business might be small it still takes the same time and effort to establish, as would any other business. That is why when you are planning to grow, getting the right small business loan in Melbourne with the correct procedure is one of the essential things to increase your chances of success. However, with the variety of options that the market is offering along with the eligibility criteria that is required, it can be a confusing and overwhelming experience to pick the right fit.

So, to make things easier for you, here are a few things that you should know before you go ahead and try securing a small business loan.

#1 What is your Business Credit Score?

As in the case of any other loan, when you apply for a small business loan, your business credit score is one of the main factors that will be considered. That is why, before you go ahead and apply for a small business loan it is a good practice to know your credit score. To do so, you can request for a personal credit report from your bank or get it online so that you can check for errors like a late payment. If anything like that happens contact the credit bureau and the company involved to resolve the issue.

You stand a chance to get the loan with an attractive interest rate if you have a high credit score of above 700. For example, if you need to get a commercial loan under $100,000 you can expect to pay a competitive interest rate. If in case you have a credit score 600 to 700 point you might be able to get a small business loan, however at a higher interest rate. If however, your score is lower than 600 points you may find it difficult to get a loan easily. Yet it is still possible if you try. Our business lending specialists can assess your situation and guide you through the complete process.

#2 How Much are the Fees?

Before getting a business loan you need to know if there are any upfront or ongoing fees that you need to pay to establish the loan. These two costs along with interest charges, can make a significant impact on the overall cost and affordability of the loan. Hence, ensure to compare and find the most competitive offering from all lenders for small business loans.

#3 Why Do you Need the Loan?

This is an important question that you need to ask yourself before taking a loan as it will decide how much you need to borrow for the business and how much you can repay. So, go ahead make a plan and decide whether you need the loan to expand your business, to buy equipment, or to setup a new location. If you are unsure about how much cash your company needs, meet with an adviser or an accountant before approaching any lenders.

#4 How Much Do You Need (or Can) to Borrow?

This is something that you must understand. Just because your business stands eligible to borrow a huge amount of money, it does not mean that you actually need so much, even if lender says so. You should not borrow more than you can repay or vice versa such that it does not benefit your business at all. Do some cash flow projections to figure out how much you can afford in repayments and some estimates on how much you’ll need in total to know your borrowing power.

#5 How Does the Process Work?

The loan process may be complex to understand. Sometimes when you apply for a small business loan the chances are that it might not get approved for many reasons. If your loan request is turned down due to poor credit you can take the time to improve your credit score and then seek a loan at a later date. It is also recommended to present prepare and submit a well drafted business plan to support your loan application. If the loan process is still a puzzle to you can talk to your business loan advisor for advice on the same.

Conclusion

When it comes to securing a business loan, the entire process can be a challenging one. Your business must be financially sound to obtain a small business loan. Other than that lenders may also require you to include a statement of collateral as a security against the business loan, such as commercial or residential property. You should also know that if your loan is unsecured, it will come with a higher interest rate. So, if you are looking for a small business loan but are unsure about getting your way around it, talk to a financial expert and discuss the different business loan options so that you can find one that is well suited for your business.

Disclaimer:

The information presented by staff or employees of Credit Hub and its associated companies is provided for general informational purposes only. We do not guarantee the accuracy, completeness, or timeliness of the data or views presented. Audience members should conduct their own research and verify any information before relying on it. Credit Hub and its associated companies are not liable for any errors or omissions, or for any actions taken based on the information presented.

Mortgage Broker in Point Cook

Credit Hub Australia
About the role

Join our dynamic team at Credit Hub Australia as a Finance/Mortgage Broker in our conveniently located Point Cook office, close to the freeway and train station, with free parking available.

In this role, you will be responsible for providing personalised mortgage solutions to our valued clients and also managing your colleagues by co-ordinating the allocation of files and general day to day running of the broker team. With a focus on delivering exceptional customer service, you will guide clients through the entire mortgage process, from initial application to final approval.

“Position is for Mortgage broker on commission/contract basis.”

What you'll be doing
  • You will develop and expand network with our help.
  • Sales, cold calling, and networking come naturally to you. You thrive on engaging with prospective clients to understand their unique financial needs and goals.

  • You will act on leads and existing database as provided and generate sales and ongoing relations.

  • Actively participate in team meetings and contribute to the overall success of the business

What we're looking for
  • You are an existing broker with proven experience in Mortgage Broking or lending abilities, or in a similar financial services role looking to take your career further with a successful Mortgage house.

  • In-depth knowledge of the Australian mortgage market, including products, policies, and regulatory requirements.

  • Excellent communication and interpersonal skills, with the ability to build lasting relationships and earn client trust.

  • A strong commitment to delivering outstanding customer service and consistently exceeding client expectations.

  • Self-motivated and capable of working independently, while also thriving in a collaborative team environment.

  • Relevant industry qualifications, such as a Certificate IV in Finance and Mortgage Broking.

  • Ability to manage multiple tasks, stay organized, and work reliably without supervision.

  • A results-driven mindset with a strong sales focus, coupled with exceptional work ethic, time management, and multitasking abilities.

What we offer

At Credit Hub Australia, we are committed to providing our team with a supportive and rewarding work environment. Some of the key benefits of joining our team include:

  • Competitive remuneration and performance-based bonuses
  • Ongoing training and professional development opportunities
  • Flexible work arrangements and a positive work-life balance
About us

Credit Hub Australia is a leading provider of mortgage and finance solutions, with a strong presence in the Point Cook in the Western Suburb of Melbourne and surrounding areas. Our mission is to empower our clients to achieve their financial goals by delivering personalised, expert advice and exceptional customer service. We are a dynamic and growing team, driven by a passion for helping our clients and making a positive impact on our local community. We are with Finsure as an agrregator Group. 

If you’re ready to take the next step in your career as a Mortgage Broker, apply now to join our team at Credit Hub Australia.

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