While small to medium enterprises (SMEs) account for 97% of Australian businesses, it can still be difficult to make a case to a bank when looking for finance to start a new business or invest in the growth of an existing one. The good news is that applying for commercial finance through a bank is far from the only option.

Non-bank lenders

You aren't restricted to the big banks when it comes to finance for your business, there is a range of non-bank lenders with products specifically designed for SMEs.

Personal loans

A relatively young enterprise that doesn’t have a track record of success may not be looked upon favourably by banks, which make decisions based on risk. A lack of documented history doesn’t aid a business loan application, so for those who still want to go through the bank they use for transaction accounts, a personal loan could be the way to go.

The downside may be higher interest rates and lower loan amounts, but a personal loan can provide a good buffer for start-ups and is relatively easy to apply for.

Private funding 

Private funding is when individuals lend through a trust account. While it can be a little more costly than the average business loan, it carries the advantage of flexibility.

Talk to a broker

Talking to a commercial finance broker means gaining access to myriad lenders finance products and loan types, as well as expertise in matching your needs to the right loan type. 

An experienced finance broker can take a broad view of a business’s finance, assist in business planning, and use their deep knowledge of a client’s needs to look beyond a simple ‘lowest interest rate’ formula in selecting a finance product, ensuring that business owners have access to the capital they need, when they need it.

Securing finance is imperative for a business’s prosperity. MFAA Accredited Finance Brokers can assist with finding the right type of finance to support the growth and success of your business.