Quick Loan for Business: What You Need To Know

Ever felt like your business is a car running low on fuel? You can see the destination- growth, expansion, success- but you need a little extra ‘juice’ to get there. 

That’s where quick business loans come in, acting as your pit stop to fuel up and get back in the race.

We’re here to demystify the quick loan process and arm you with the knowledge you need to make the best decision for your business.

This guide will discuss everything you need to know, from where and how to get a quick loan for your business to alternative options for fast cash flow. 

So whether you’re a startup dreaming big or a more established business aiming to sustain and grow your success, this essential information will prepare you to tackle the world of quick business loans.

Where Do Businesses Get Fast Loans in Australia?

Business Credit Card

A business credit card operates similarly to a personal one but is specifically designed for business expenses.

It provides a revolving line of credit for handling short-term cash flow challenges or unexpected expenses. 

You can apply through banks or financial institutions like ANZ, Commonwealth Bank, or Westpac.

Approval often happens within a week, though this varies with each provider.

Personal Loan

While not expressly designed for business use, a personal loan can be an avenue for securing quick funds, especially for sole traders or startups. 

A personal sum is a lump-sum amount you borrow and repay over a set period with interest. As of July 2023, the average interest rate for personal loans is 10.99%.

However, that rate can change depending on the lender and your financial circumstances.

Banks, credit unions, or online lenders such as SocietyOne or MoneyPlace offer personal loans.

Depending on the lender, approval can be within a week.

Hire Purchase

Hire purchase is a form of asset finance where you hire an item over a set period, and it becomes yours once you’ve made all payments.

It’s a handy way to acquire expensive equipment, such as industrial machinery, commercial vehicles, high-end computer systems, or specialised tools necessary for your business, without a considerable upfront cost.  

Finance companies, banks, or the equipment providers themselves can offer this.

The time for approval will depend on the lender but generally takes one to two weeks.

Online Business Loans

Online business loans have surged in popularity due to their convenience and speed. 

Fintech companies like Prospa or Moula often provide these loans.

A fintech company combines technology and innovative software solutions to improve or automate the delivery and use of financial services. 

Such companies offer short-term loans tailored to small businesses and boast a quick, streamlined application process with approval times as fast as 24 hours.

Peer-to-Peer Lending 

Peer-to-peer (P2P) lending platforms like Plenti and SocietyOne link businesses directly with individual or institutional investors.

These platforms offer both secured and unsecured business loans. 

The appeal of P2P lending lies in competitive rates and swift approval times, often within 48 hours.

Bank Overdraft 

A bank overdraft serves as a financial cushion for your business.

It allows you to draw more money than is available in your business bank account, providing immediate access to extra funds when needed. 

Many traditional banks like National Australia Bank (NAB) or Commonwealth Bank offer this facility.

The approval process usually takes a few business days, provided you meet the bank’s lending criteria. 

How Can Businesses Prepare for Fast Loans? 

Prepare Your Documents in Advance 

Preparation is key when securing a quick loan for your business to streamline the approval process and put you in the best position for a favourable outcome.

Gather essential documents such as financial statements, tax returns, and business plans early.

An accountant can compile these, ensuring they are accurate and up-to-date for a smoother application process.

Assess Your Credit History 

A healthy credit history can fast-track loan approvals.

Accountants can advise on strategies to improve your credit score, like timely payment of bills and debts, which can improve your chances of a successful application.

Establish Financial Needs and Craft a Solid Business Plan 

To boost your chances of fast loan approval, you need to define your loan requirements and demonstrate financial stability.

Engage your accountant to determine the loan amount you need based on cash flow projections and budgeting. 

Then they can create a compelling, data-driven business plan, underlining your strategy to repay the loan and other future financial projections.

This comprehensive document will solidify your application and showcase your potential for successful loan management.

Ensure Legal Compliance

Your business must be in good standing with any legal requirements to help you qualify for a loan. 

Accountants can verify that your business meets these requirements, including tax and superannuation obligations, business and industry-specific registrations and adherence to financial reporting standards. 

What Alternative Steps Can Businesses Take for Fast Cash? 

Beyond traditional loans, you can employ other savvy strategies to generate fast cash to bolster your financial position when time is of the essence.

Invoice Financing 

Invoice financing allows your business to receive an advance on your outstanding invoices to improve cash flow.

Your accountant can assist in identifying suitable invoice financing providers and evaluate their terms to determine if they align with your business needs.

Review Expenses and Cut Costs 

A thorough review of your expenses could reveal areas where you can reduce costs for quick cash.

Your accountant’s expertise is crucial here; they can help identify inefficiencies or unnecessary expenses, potentially freeing up cash in the short term.

Asset Liquidation

Selling off non-essential assets, such as surplus equipment, unused office space, or excess inventory, can provide a quick cash boost.

An accountant can provide an accurate valuation of your assets and advise on the tax implications of their sale so you get the best possible return.

Crowdfunding 

Crowdfunding platforms can be a great way to generate funds quickly, especially for innovative projects or startups.

Some popular and reputable platforms in Australia include Pozible, Kickstarter, Chuffed, and Birchal. 

An accountant can guide you through the process so you understand the associated financial and tax obligations.

Then they can help you craft a compelling crowdfunding campaign.

Does Your Business Need Financial Help?

Refuel your business with much-needed finances through a quick loan.

Multiple avenues are available, from fast loans, like business credit cards, personal loans, and bank overdrafts, to more innovative solutions, like online business loans and peer-to-peer lending. 

Preparing your business for fast loans, understanding your financial needs and crafting a strong business plan are crucial steps to increase your chances of securing funds. 

Thinking about getting a quick loan for your business?

You need a dedicated pit crew to get you refuelled with cash and back in the race as quickly as possible. 

Through our Finance Services here at Pherrus, we can guide you through the process of securing a quick loan for your business.

We’ll help you pick the best loan and explain how it works, so you can feel confident before signing on the dotted line. 

Beyond securing a loan, you’ll want a strategic financial plan in place for the future so your business can continue to grow and thrive.

Our expert accountants can take care of that with our specialised Wealth Creation Strategies and Business Analysis Services.

Fill in our online form, and we’ll be in touch shortly.

Alternatively, call us on +61 (02) 9099 9109 to book an appointment at our Bella Vista office in Sydney, NSW.